LIVE
Cointelegraph
@Cointelegraph
Cointelegraph covers fintech, blockchain and Bitcoin, bringing you the latest news and analyses on the future of money.
Följer
Följare
Gilla-markeringar
Delade
Markets blow up, so ‘the best prep is to have a plan to buy fear and sell euphoria’ — Veteran trader
Global markets blew up over the weekend, and the onslaught carried on throughout the trading day on Aug. 5 as the DOW and S&P 500 dropped by more than 1,000 points and Bitcoin (BTC) price fell below $49,000. Japan’s Nikkei 225 index saw its worst one-day correction since October 1987, and the sell-off in Taiwan’s benchmark stock index was the worst trading day in 57 years.
Nearly all markets closed Aug.5 in the red, and while it seems too early to conclude that the selling is over, traders are likely wondering whether or not it’s time to start thinking like a contrarian and handpicking assets at a discount?
To discuss what’s happening in this week’s volatile market, Cointelegraph spoke to Huf, the founder of Pear Protocol, a decentralized exchange that allows traders to engage in trending narratives via pair trading.
Cointelegraph: From your point of view, is there something traders are drastically wrong about regarding the current crash in global markets and crypto?
Huf: Market participants are overwhelmingly positioning for a Q4 rally, with upside catalysts including rate cuts, a civil transition to a new government in the US and other crypto specific tailwinds such as FTX creditor repayments.
In my opinion they are less aware that if we start aggressively cutting, this will lead to sustained downside pressure on the dollar and specifically USDJPY. TradFi deleveraging takes place over days and weeks, whereas in crypto it’s usually over in one cascade. This further downside in USDJPY can lead to a second round of yen carry trade unwinds.
Elections are usually positive equity market catalysts but given the divided nature of US society, a less than peaceful transition to a new government is a risk - including prolonged protests that morph into nationwide riots. Some other countries such as Iran and Russia may take advantage of a distracted White House and increase their military operations abroad.
Lastly, the US Government is yet to sell a substantial portion of their seized Bitcoin assets. A large portion of those coins (outside of Silk Road) are embroiled in a legal battle with BitFinex and its users. If they were to win and receive the Bitcoin, coins which had previously essentially been out of circulating supply could hit the market then we could see a Mt. Gox part 2 style fear, offsetting the FTX tailwind.
CT: As a trader, is there a lesson to be learned or a better way to prepare, play or hedge against events like the last few days?
Huf: Summer liquidity is always lower than the rest of the year, so preparing for this seasonality is key. Traders should either size down (use less leverage) in these summer months to account for this difference in market structure and/or increase your cash allocation to improve your average entry price.
Whilst tempting to think one could have simply bought VIX futures - the reality is that most of the time the vix is in contango and holding/rolling to expiry has been an expensive and fruitless endeavour.
We’ve been trending down since April in crypto. One technique for such choppy and bearish conditions is to pair trade - i.e. you build a portfolio of long assets and offset the risk with a corresponding basket of shorts. For example, a user may still want to be long Bitcoin but be worried about drawdowns like today. One idea would be to be long Bitcoin and short something like Litecoin or ADA. You benefit from the upside when markets trend as moves tend to be bitcoin led, whilst the short leg provides protection on the downside.
As always, the best form of preparation is to have a plan to buy fear and sell euphoria. What’s made this market hard is compared to previous cycles where dogcoins marked a clear local top, the memecoin mania extended for several weeks and months giving the illusion of sustainability. When you next see a limited pool of capital constantly rotating between narratives it will be an indicator of late cycle behaviour.
Related: Jump Trading’s Ether dump: Smart move or sign of trouble?
CT: Is there a better way to position directionally than just looking at potential mean reversions on deeply oversold assets like BTC, ETH and SOL?
Yes, one of the misconceptions about pair trading is that you give up too much upside. That’s not necessarily true due to the use of cross margin and sensible leverage. For example, a user may anticipate a +10% move up in SOL. This clearly carries a lot of risk to the downside.
However, trading something like SOL/ETH allows a user to capture a say 5% move instead and can be done with leverage of 2x. The gains on the long SOL leg offset any potential loss of being short ETH into a raising market.
However, the real power of this strategy is on the downside. Say SOL was to move down -5%, and ETH fell -10%, then the user is still making money regardless of if the broader market went up or down.
Whilst pair trading is not market-neutral per se due to the beta and vol of the two assets, it does provide a compelling way to amplify your view using leverage, whilst shielding you from liquidation risk.
Other instruments are starting to make their way over from TradFi including 0dte options on crypto, currently being pioneered by the likes of IVX (on Berachain).
SOL/ETH pair trading example. Source: Huf
CT: Do you think the negative funding in large caps is a head fake?
Huf: Funding has some idiosyncratic elements to it depending on the asset and the venue. For example, ETH funding is historically low partly driven by Ethena labs and the issuance of its stablecoin, the mechanism for which systematically sells ETH perps and keeps a lid on funding costs. Funding has been varying across different trading platforms too based on whether their users are aggressively long or short, so it often says more about a user base and their conditioned response (like shorting the lows) than signalling where markets may go next.
The reality is a lot of people have lost a lot of money and are revenge trading, and thus dialling up the leverage and getting stopped out before higher funding can really reset and kick in.
CT: Do these margin calls and unwinds in TradFi that we saw this week take a few days to wash out compared to crypto, and does that mean that any immediate oversold bounce in crypto is a trap?
Huf: Yes, there are two types of TradFi selling to be aware of. Discretionary and algorithmic. When vol spikes like it has - a combination of momentum funds, risk parity algos, CTAs and other systematic strategies flip their signal and start selling risk assets including equity futures. Once volatility dies down, the models reset and the trend goes back to neutral. However, discretionary allocation is often a lot slower. This involves risk and asset allocation committees slowing unwinding either in an OTC fashion or processing their trades in smaller clips so as to panic sell.
CT- Many analysts have long expected the US Federal Reserve to cut rates and on Aug.5, Wharton’s Jeremy Siegel said the Fed needs to make an emergency rate cut. Meanwhile, Gradually, Then Suddenly author Parker Lewis said “It doesn’t get interesting until the Fed starts cutting rates. Max pain happens after that.”
What’s your take on rate cuts, and the true short and long-term impact they could have on equities and crypto markets?
Huf: It depends on the market context. The Fed is cutting into an economy that has been relatively strong - with GDP and employment pretty robust up until this latest NFP datapoint. Rate cuts (much like rate hikes) produce a delayed response in terms of looser credit conditions and higher consumption/spending.
In the short term, thankfully the market has gotten ahead of itself expecting a very aggressive path of rate cuts. If and when this doesn’t manifest, it can lead to some relief especially if the economic data is good. In the long term, the bigger risk to a society is always inflation and thus the lever of interest rates has shown to be an effective tool in controlling that.
Either way, prepare for more volatility into year end as expectations have unhinged from reality.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Nearly all markets closed Aug.5 in the red, and while it seems too early to conclude that the selling is over, traders are likely wondering whether or not it’s time to start thinking like a contrarian and handpicking assets at a discount?
To discuss what’s happening in this week’s volatile market, Cointelegraph spoke to Huf, the founder of Pear Protocol, a decentralized exchange that allows traders to engage in trending narratives via pair trading.
Cointelegraph: From your point of view, is there something traders are drastically wrong about regarding the current crash in global markets and crypto?
Huf: Market participants are overwhelmingly positioning for a Q4 rally, with upside catalysts including rate cuts, a civil transition to a new government in the US and other crypto specific tailwinds such as FTX creditor repayments.
In my opinion they are less aware that if we start aggressively cutting, this will lead to sustained downside pressure on the dollar and specifically USDJPY. TradFi deleveraging takes place over days and weeks, whereas in crypto it’s usually over in one cascade. This further downside in USDJPY can lead to a second round of yen carry trade unwinds.
Elections are usually positive equity market catalysts but given the divided nature of US society, a less than peaceful transition to a new government is a risk - including prolonged protests that morph into nationwide riots. Some other countries such as Iran and Russia may take advantage of a distracted White House and increase their military operations abroad.
Lastly, the US Government is yet to sell a substantial portion of their seized Bitcoin assets. A large portion of those coins (outside of Silk Road) are embroiled in a legal battle with BitFinex and its users. If they were to win and receive the Bitcoin, coins which had previously essentially been out of circulating supply could hit the market then we could see a Mt. Gox part 2 style fear, offsetting the FTX tailwind.
CT: As a trader, is there a lesson to be learned or a better way to prepare, play or hedge against events like the last few days?
Huf: Summer liquidity is always lower than the rest of the year, so preparing for this seasonality is key. Traders should either size down (use less leverage) in these summer months to account for this difference in market structure and/or increase your cash allocation to improve your average entry price.
Whilst tempting to think one could have simply bought VIX futures - the reality is that most of the time the vix is in contango and holding/rolling to expiry has been an expensive and fruitless endeavour.
We’ve been trending down since April in crypto. One technique for such choppy and bearish conditions is to pair trade - i.e. you build a portfolio of long assets and offset the risk with a corresponding basket of shorts. For example, a user may still want to be long Bitcoin but be worried about drawdowns like today. One idea would be to be long Bitcoin and short something like Litecoin or ADA. You benefit from the upside when markets trend as moves tend to be bitcoin led, whilst the short leg provides protection on the downside.
As always, the best form of preparation is to have a plan to buy fear and sell euphoria. What’s made this market hard is compared to previous cycles where dogcoins marked a clear local top, the memecoin mania extended for several weeks and months giving the illusion of sustainability. When you next see a limited pool of capital constantly rotating between narratives it will be an indicator of late cycle behaviour.
Related: Jump Trading’s Ether dump: Smart move or sign of trouble?
CT: Is there a better way to position directionally than just looking at potential mean reversions on deeply oversold assets like BTC, ETH and SOL?
Yes, one of the misconceptions about pair trading is that you give up too much upside. That’s not necessarily true due to the use of cross margin and sensible leverage. For example, a user may anticipate a +10% move up in SOL. This clearly carries a lot of risk to the downside.
However, trading something like SOL/ETH allows a user to capture a say 5% move instead and can be done with leverage of 2x. The gains on the long SOL leg offset any potential loss of being short ETH into a raising market.
However, the real power of this strategy is on the downside. Say SOL was to move down -5%, and ETH fell -10%, then the user is still making money regardless of if the broader market went up or down.
Whilst pair trading is not market-neutral per se due to the beta and vol of the two assets, it does provide a compelling way to amplify your view using leverage, whilst shielding you from liquidation risk.
Other instruments are starting to make their way over from TradFi including 0dte options on crypto, currently being pioneered by the likes of IVX (on Berachain).
SOL/ETH pair trading example. Source: Huf
CT: Do you think the negative funding in large caps is a head fake?
Huf: Funding has some idiosyncratic elements to it depending on the asset and the venue. For example, ETH funding is historically low partly driven by Ethena labs and the issuance of its stablecoin, the mechanism for which systematically sells ETH perps and keeps a lid on funding costs. Funding has been varying across different trading platforms too based on whether their users are aggressively long or short, so it often says more about a user base and their conditioned response (like shorting the lows) than signalling where markets may go next.
The reality is a lot of people have lost a lot of money and are revenge trading, and thus dialling up the leverage and getting stopped out before higher funding can really reset and kick in.
CT: Do these margin calls and unwinds in TradFi that we saw this week take a few days to wash out compared to crypto, and does that mean that any immediate oversold bounce in crypto is a trap?
Huf: Yes, there are two types of TradFi selling to be aware of. Discretionary and algorithmic. When vol spikes like it has - a combination of momentum funds, risk parity algos, CTAs and other systematic strategies flip their signal and start selling risk assets including equity futures. Once volatility dies down, the models reset and the trend goes back to neutral. However, discretionary allocation is often a lot slower. This involves risk and asset allocation committees slowing unwinding either in an OTC fashion or processing their trades in smaller clips so as to panic sell.
CT- Many analysts have long expected the US Federal Reserve to cut rates and on Aug.5, Wharton’s Jeremy Siegel said the Fed needs to make an emergency rate cut. Meanwhile, Gradually, Then Suddenly author Parker Lewis said “It doesn’t get interesting until the Fed starts cutting rates. Max pain happens after that.”
What’s your take on rate cuts, and the true short and long-term impact they could have on equities and crypto markets?
Huf: It depends on the market context. The Fed is cutting into an economy that has been relatively strong - with GDP and employment pretty robust up until this latest NFP datapoint. Rate cuts (much like rate hikes) produce a delayed response in terms of looser credit conditions and higher consumption/spending.
In the short term, thankfully the market has gotten ahead of itself expecting a very aggressive path of rate cuts. If and when this doesn’t manifest, it can lead to some relief especially if the economic data is good. In the long term, the bigger risk to a society is always inflation and thus the lever of interest rates has shown to be an effective tool in controlling that.
Either way, prepare for more volatility into year end as expectations have unhinged from reality.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
BTC price chart shows Bitcoin can match $49.5K lows within days
Bitcoin (BTC) risks another trip below $50,000 after a giant daily candle wick spooks analysis.
In his latest X coverage, popular trader CrypNuevo warned that recent BTC price volatility may end up in Bitcoin matching six-month lows.
BTC price history shows wicks "filled" in days
Bitcoin has managed to bounce more than $5,000 versus its $49,500 bottom seen on Aug. 5.
Consensus is yet to form over where BTC/USD could be headed next, however, and opinions are diverging as the dust continues to settle on a grim day’s losses.
For CrypNuevo, there is cause for concern. Historically, he noted, large wicks generated by volatility tend not to wait long before price returns to “fill” them, matching the lows.
Uploading an explanatory chart, he showed that it is often a matter of days before such a process plays out.
“I've marked in this chart all the long wicks applicable to the wick-fill strategy since March to put things into perspective,” part of accompanying commentary added.
“We don't know when exactly this new long wick will get filled, but it should get filled sooner or later.”
BTC/USDT 1-day chart with wick-fill data. Source: CrypNuevo/X
Another post noted a curious element of the BTC price rebound. The bounce, CrypNuevo acknowledged, had come at a key level.
“We bounced from EXACTLY the 50% level of a previous long wick,” he concluded.
BTC/USDT 1-day chart. Source: CrypNuevo/X
Analysis: "Possibly time" to consider Bitcoin, Ether buys
Other market participants gingerly floated the idea of a bottom having already formed for both Bitcoin and largest altcoin Ether (ETH).
Related: Bitcoin speculators realize $850M losses in sub-$50K BTC price dump
Among them was trading firm QCP Capital, which flagged a giant leverage flush as a cathartic event for bulls.
“Yesterday's risk-off rout flushed out a decent chunk of leverage,” it wrote in its latest bulletin to Telegram channel subscribers.
“With prices having fallen off a cliff, it is possibly time to start thinking about accumulating BTC and ETH spot.”
QCP was also optimistic on macroeconomic moves going forward. The United States Federal Reserve, it argued, was unlikely to enact an emergency interest rate cut, inducing extra market panic in the process.
“Asset prices are likely to stay volatile and markets remain choppy until clarity on Fed and BoJ policy is provided, with key updates expected from BoJ Deputy Governor Uchida on Wednesday and the Fed's Jackson Hole conference from August 22-24,” it stated, referring to upcoming cues from both the Fed and the Bank of Japan.
BTC/USD traded at around $55,000 at the Aug. 6 Wall Street open, per data from Cointelegraph Markets Pro and TradingView.
BTC/USD 1-hour chart. Source: TradingView
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
In his latest X coverage, popular trader CrypNuevo warned that recent BTC price volatility may end up in Bitcoin matching six-month lows.
BTC price history shows wicks "filled" in days
Bitcoin has managed to bounce more than $5,000 versus its $49,500 bottom seen on Aug. 5.
Consensus is yet to form over where BTC/USD could be headed next, however, and opinions are diverging as the dust continues to settle on a grim day’s losses.
For CrypNuevo, there is cause for concern. Historically, he noted, large wicks generated by volatility tend not to wait long before price returns to “fill” them, matching the lows.
Uploading an explanatory chart, he showed that it is often a matter of days before such a process plays out.
“I've marked in this chart all the long wicks applicable to the wick-fill strategy since March to put things into perspective,” part of accompanying commentary added.
“We don't know when exactly this new long wick will get filled, but it should get filled sooner or later.”
BTC/USDT 1-day chart with wick-fill data. Source: CrypNuevo/X
Another post noted a curious element of the BTC price rebound. The bounce, CrypNuevo acknowledged, had come at a key level.
“We bounced from EXACTLY the 50% level of a previous long wick,” he concluded.
BTC/USDT 1-day chart. Source: CrypNuevo/X
Analysis: "Possibly time" to consider Bitcoin, Ether buys
Other market participants gingerly floated the idea of a bottom having already formed for both Bitcoin and largest altcoin Ether (ETH).
Related: Bitcoin speculators realize $850M losses in sub-$50K BTC price dump
Among them was trading firm QCP Capital, which flagged a giant leverage flush as a cathartic event for bulls.
“Yesterday's risk-off rout flushed out a decent chunk of leverage,” it wrote in its latest bulletin to Telegram channel subscribers.
“With prices having fallen off a cliff, it is possibly time to start thinking about accumulating BTC and ETH spot.”
QCP was also optimistic on macroeconomic moves going forward. The United States Federal Reserve, it argued, was unlikely to enact an emergency interest rate cut, inducing extra market panic in the process.
“Asset prices are likely to stay volatile and markets remain choppy until clarity on Fed and BoJ policy is provided, with key updates expected from BoJ Deputy Governor Uchida on Wednesday and the Fed's Jackson Hole conference from August 22-24,” it stated, referring to upcoming cues from both the Fed and the Bank of Japan.
BTC/USD traded at around $55,000 at the Aug. 6 Wall Street open, per data from Cointelegraph Markets Pro and TradingView.
BTC/USD 1-hour chart. Source: TradingView
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
World's largest Bitcoin miner increased BTC holdings by $124M in July
Marathon Digital Holdings, the world’s largest Bitcoin miner, continues increasing its Bitcoin holdings as part of its “full hodl” approach.
Marathon Digital increased its holding by 2,282 Bitcoin (BTC), worth over $124 million at the current valuation.
This puts Marathon’s Bitcoin holdings at 20,818 BTC, worth over $1.14 billion, according to an announcement published on Aug. 6.
Whales, or large Bitcoin holding entities, can have a significant impact on Bitcoin price. Large entities switching to a long-term holding strategy are considered bullish signs for the underlying asset’s future potential.
Related: Bitcoin price downside may last 2 months — Analysis
Marathon goes “full hodl” on Bitcoin as a strategic treasury reserve asset
Marathon acquired $100 million worth of Bitcoin over the month of July, aiming to make BTC a strategic treasury reserve asset, as reported by Cointelegraph.
Marathon plans to go “full hodl,” which is crypto slang for “hold on for dear life,” Fred Thiel, CEO and chairman of Marathon Digital, announced in a July 25 X post:
“Today Marathon is proud to announce that to strengthen our strategy of holding Bitcoin as our strategic treasury reserve asset, we have over the past month purchased $100 million in BTC, and will now go full HODL.”
Marathon’s Bitcoin strategy is a positive development, considering that the world’s largest Bitcoin miner isn’t capitulating despite a 50% cut in block rewards due to the 2024 Bitcoin halving, which could still force other miners to sell BTC.
Mining Bitcoin at home — Is it time to start?
Related: Kamala Harris chooses Minnesota Gov. Walz as US presidential running mate
Marathon increases monthly Bitcoin production by 17%
Beyond just buying BTC, Marathon has also increased its Bitcoin production to 692 BTC for the month of July, which marks a 17% month-over-month increase.
The firm holds a total of $1.6 billion in total Bitcoin and cash holdings, according to the announcement.
Marathon’s block wins also increased by 27% over the past month, according to Fred Thiel, the CEO and chairman of Mara, who wrote in the announcement:
“BTC production last month rose 17% to 692 BTC compared to June, and our average operational hash rate grew 5% over the same period to 27.5 EH/s. We will continue to mine aggressively while the global hash rate comes offline due to a lower BTC price and use all the tools at our disposal related to mining economics for maximum production.”
Notably, Marathon didn’t sell any Bitcoin during June either.
Magazine: Criminal at Bitcoin 2024, BTC Strategic Reserve Bill, and more: Hodler’s Digest, July 28 – Aug. 3
Marathon Digital increased its holding by 2,282 Bitcoin (BTC), worth over $124 million at the current valuation.
This puts Marathon’s Bitcoin holdings at 20,818 BTC, worth over $1.14 billion, according to an announcement published on Aug. 6.
Whales, or large Bitcoin holding entities, can have a significant impact on Bitcoin price. Large entities switching to a long-term holding strategy are considered bullish signs for the underlying asset’s future potential.
Related: Bitcoin price downside may last 2 months — Analysis
Marathon goes “full hodl” on Bitcoin as a strategic treasury reserve asset
Marathon acquired $100 million worth of Bitcoin over the month of July, aiming to make BTC a strategic treasury reserve asset, as reported by Cointelegraph.
Marathon plans to go “full hodl,” which is crypto slang for “hold on for dear life,” Fred Thiel, CEO and chairman of Marathon Digital, announced in a July 25 X post:
“Today Marathon is proud to announce that to strengthen our strategy of holding Bitcoin as our strategic treasury reserve asset, we have over the past month purchased $100 million in BTC, and will now go full HODL.”
Marathon’s Bitcoin strategy is a positive development, considering that the world’s largest Bitcoin miner isn’t capitulating despite a 50% cut in block rewards due to the 2024 Bitcoin halving, which could still force other miners to sell BTC.
Mining Bitcoin at home — Is it time to start?
Related: Kamala Harris chooses Minnesota Gov. Walz as US presidential running mate
Marathon increases monthly Bitcoin production by 17%
Beyond just buying BTC, Marathon has also increased its Bitcoin production to 692 BTC for the month of July, which marks a 17% month-over-month increase.
The firm holds a total of $1.6 billion in total Bitcoin and cash holdings, according to the announcement.
Marathon’s block wins also increased by 27% over the past month, according to Fred Thiel, the CEO and chairman of Mara, who wrote in the announcement:
“BTC production last month rose 17% to 692 BTC compared to June, and our average operational hash rate grew 5% over the same period to 27.5 EH/s. We will continue to mine aggressively while the global hash rate comes offline due to a lower BTC price and use all the tools at our disposal related to mining economics for maximum production.”
Notably, Marathon didn’t sell any Bitcoin during June either.
Magazine: Criminal at Bitcoin 2024, BTC Strategic Reserve Bill, and more: Hodler’s Digest, July 28 – Aug. 3
iShares BTC ETF investors weather major price drop with zero flows
At the market opening on Aug. 5, traders were in for a shock to see that the Bitcoin ETF managed by iShares ($IBIT) was down by 14% after already experiencing a decline of 8% the previous week.
HODLers holding
However, as noted by Bloomberg senior ETF analyst Eric Balchunas, there were $0 in flows denoting that traders did not budge on their positions. Balchunas compared their unwavering-ness to the “Rock of Gibraltar” and said the industry is “lucky to have them.”
Source: Eric Balchunas
While the total outflows for the group of ETFs were down $168 million, it only accounts for 0.3% of the total assets under management (AUM) and one third of that was from the Grayscale Bitcoin Trust ($GBTC).
Balchunas followed up by saying that it’s possible to see more outflows this week, guesstimating that a “couple billion” could leave, even up to 5%.
“So far [though] looking much stronger than that. Even I've been surprised by the HODL ability of the boomers and equally surprised by the weakness of the natives.”
Market reactions
However, the massive outflows from the ETF market have consequential effects on the overall market, tipping the Crypto Fear & Greed Index into the “Extreme Fear” zone. This is the first time the index has reached this level in two years.
Related: Bitcoin trading volume recorded post-halving ATH as crypto market bled
Bitcoin (BTC) has also seen major fluctuations, crashing to $49,500 on Aug. 5. During this crash, long-term BTC holders sold roughly $600,000 of the cryptocurrency, with the rest of the losses being attributed to short-term holders.
Nonetheless, amid the market turmoil, Bitcoin and Ether ETF still recorded almost $6 billion in trading volume on Aug. 5.
Meanwhile, the Ethereum ETFs were “unfazed” as pointed out by Balchunas on Aug. 6. The Bloomberg analyst highlighted that equity ETFs took in “double the cash” compared to normal in light of what he called the “scariest sell off in quite a while.”
Source: Eric Balchunas
X Hall of Flame: Bitcoin $500K prediction, spot Ether ETF ‘staking issue’— Thomas Fahrer
HODLers holding
However, as noted by Bloomberg senior ETF analyst Eric Balchunas, there were $0 in flows denoting that traders did not budge on their positions. Balchunas compared their unwavering-ness to the “Rock of Gibraltar” and said the industry is “lucky to have them.”
Source: Eric Balchunas
While the total outflows for the group of ETFs were down $168 million, it only accounts for 0.3% of the total assets under management (AUM) and one third of that was from the Grayscale Bitcoin Trust ($GBTC).
Balchunas followed up by saying that it’s possible to see more outflows this week, guesstimating that a “couple billion” could leave, even up to 5%.
“So far [though] looking much stronger than that. Even I've been surprised by the HODL ability of the boomers and equally surprised by the weakness of the natives.”
Market reactions
However, the massive outflows from the ETF market have consequential effects on the overall market, tipping the Crypto Fear & Greed Index into the “Extreme Fear” zone. This is the first time the index has reached this level in two years.
Related: Bitcoin trading volume recorded post-halving ATH as crypto market bled
Bitcoin (BTC) has also seen major fluctuations, crashing to $49,500 on Aug. 5. During this crash, long-term BTC holders sold roughly $600,000 of the cryptocurrency, with the rest of the losses being attributed to short-term holders.
Nonetheless, amid the market turmoil, Bitcoin and Ether ETF still recorded almost $6 billion in trading volume on Aug. 5.
Meanwhile, the Ethereum ETFs were “unfazed” as pointed out by Balchunas on Aug. 6. The Bloomberg analyst highlighted that equity ETFs took in “double the cash” compared to normal in light of what he called the “scariest sell off in quite a while.”
Source: Eric Balchunas
X Hall of Flame: Bitcoin $500K prediction, spot Ether ETF ‘staking issue’— Thomas Fahrer
Japanese firm Metaplanet to invest $58.76M in Bitcoin
Metaplanet Inc. announced a gratis allotment of its 11th series of stock acquisition rights to all common shareholders during the company’s Board of Directors meeting.
The decision was made to raise approximately 10 billion yen worth around $69.13 million, with 8.5 billion yen worth $58.76 million set for investment in Bitcoin (BTC).
All common shareholders will receive the stock acquisition rights as of Sept. 5, with the allotment effective from Sept. 6 onward.
Related: Metaplanet, Semler Scientific were ‘zombie companies’ until Bitcoin, execs say
$58.76 million BTC investment
The firm’s decision to invest most of the raised funds in BTC is based on the long-term appreciation of the assets and the ability to hedge against currency depreciation.
The Japanese stock market recently faced its worst one-day drop since 1987, when the Bank of Japan raised rates on short-term government bonds on July 31.
The shift from 0% to 0.25% set off a chain of events that resulted in a huge sell-off of cryptocurrencies as BTC and Ether (ETH) witnessed price crashes of around 18 and 26%, respectively.
Related: Metaplanet completes Bitcoin buying goal with another $1.2M purchase
Metaplanet crypto expansion
On July 8, the publicly listed investment and consulting firm purchased $2.5 million BTC with 400 million yen for a total of 42.5 BTC.
After the purchase, Metaplanet held a total of 203.7 BTC, bought at an average of roughly 10 million yen, or $62,000 per BTC.
The firm announced its entrance into BTC in April, adopting the asset as a treasury asset and purchasing its first holdings for $6.5 million.
Related: Metaplanet buys another $1.2M of Bitcoin as price rebounds toward $65K
Metaplanet execs "zombie companies" pre-BTC
On July 25 at the Bitcoin Conference in Nashville, Metaplanet and Semler Scientific executives expressed admiration for MicroStrategy’s BTC playbook.
Simon Gerovich, CEO of Metaplanet, explained that his firm was beginning to show characteristics associated with zombie companies before strategically pivoting into BTC.
Gerovich said that the firm eventually “realized that Bitcoin is the apex monetary asset” and would make a “great” element for the Japanese investment company’s treasury.
Magazine: How crypto bots are ruining crypto — including auto memecoin rug pulls
The decision was made to raise approximately 10 billion yen worth around $69.13 million, with 8.5 billion yen worth $58.76 million set for investment in Bitcoin (BTC).
All common shareholders will receive the stock acquisition rights as of Sept. 5, with the allotment effective from Sept. 6 onward.
Related: Metaplanet, Semler Scientific were ‘zombie companies’ until Bitcoin, execs say
$58.76 million BTC investment
The firm’s decision to invest most of the raised funds in BTC is based on the long-term appreciation of the assets and the ability to hedge against currency depreciation.
The Japanese stock market recently faced its worst one-day drop since 1987, when the Bank of Japan raised rates on short-term government bonds on July 31.
The shift from 0% to 0.25% set off a chain of events that resulted in a huge sell-off of cryptocurrencies as BTC and Ether (ETH) witnessed price crashes of around 18 and 26%, respectively.
Related: Metaplanet completes Bitcoin buying goal with another $1.2M purchase
Metaplanet crypto expansion
On July 8, the publicly listed investment and consulting firm purchased $2.5 million BTC with 400 million yen for a total of 42.5 BTC.
After the purchase, Metaplanet held a total of 203.7 BTC, bought at an average of roughly 10 million yen, or $62,000 per BTC.
The firm announced its entrance into BTC in April, adopting the asset as a treasury asset and purchasing its first holdings for $6.5 million.
Related: Metaplanet buys another $1.2M of Bitcoin as price rebounds toward $65K
Metaplanet execs "zombie companies" pre-BTC
On July 25 at the Bitcoin Conference in Nashville, Metaplanet and Semler Scientific executives expressed admiration for MicroStrategy’s BTC playbook.
Simon Gerovich, CEO of Metaplanet, explained that his firm was beginning to show characteristics associated with zombie companies before strategically pivoting into BTC.
Gerovich said that the firm eventually “realized that Bitcoin is the apex monetary asset” and would make a “great” element for the Japanese investment company’s treasury.
Magazine: How crypto bots are ruining crypto — including auto memecoin rug pulls
Kamala Harris chooses Governor Walz as US Presidential running mate
Kamala Harris, the Vice President of the United States, has revealed her running mate for the 2024 US presidential elections.
Harris has reportedly chosen Minnesota Governor Tim Walz as her vice presidential pick, according to four unknown sources familiar with the matter, who told CNN.
Walz has served over 12 years in Congress and is currently in his second term as Minnesota governor.
Harris’ choice for a running mate could have significant implications for the cryptocurrency industry, considering that Governor Walz is known for his more stringent, regulatory-focused approach to the crypto industry.
Related: Transak becomes first US crypto on-ramp to enable wire transfers
This is a developing story, and further information will be added as it becomes available.
Harris has reportedly chosen Minnesota Governor Tim Walz as her vice presidential pick, according to four unknown sources familiar with the matter, who told CNN.
Walz has served over 12 years in Congress and is currently in his second term as Minnesota governor.
Harris’ choice for a running mate could have significant implications for the cryptocurrency industry, considering that Governor Walz is known for his more stringent, regulatory-focused approach to the crypto industry.
Related: Transak becomes first US crypto on-ramp to enable wire transfers
This is a developing story, and further information will be added as it becomes available.
Transak becomes first US crypto on-ramp to enable wire transfers
Transak, a Web3 payments infrastructure provider, has become the first fiat-to-crypto on-ramp to introduce wire transfers for crypto users in the United States.
This marks the first time that crypto users in the world’s largest economy will be able to top u their digital asset accounts via wire transfers.
Providing a familiar and secure payment method like wire transfers could bolster crypto adoption and make it more accessible to the mainstream, according to Sami Start, the co-founder and CEO of Transak.
Start told Cointelegraph:
“Wire transfers are one of the most common and trusted methods for transferring funds, and most US users are already comfortable with how the wire transfer system works. Adding this familiar and secure payment method to our extensive list of options is a significant step forward in driving crypto adoption.”
More trusted fiat on-ramps could increase cryptocurrency adoption among mainstream crypto users in the world’s largest economy. The current 560 million crypto users could triple by 2026, according to some experts.
BTC adoption s-curve. Source: Willy Woo
Related: Crypto market crash triggered by ‘aggressive’ selling by Jump Trading: Report
Wire transfers will be a “game-changer”
Previous fiat-to-crypto on-ramps, such as credit cards, come with significant restrictions, including transaction limits and higher fees, compared to wire transfers.
This is partly why wire transfers could help the industry reach the first billion crypto users, according to Start, who explained:
“As people become more comfortable using crypto for everyday transactions, we anticipate rapid growth, hopefully reaching a billion users in the next few years. We firmly believe that wire transfers can be a game-changer in accelerating crypto adoption.”
Bank transfers could significantly boost new investment into the crypto space.
In the United Kingdom, Transak saw an over four-fold increase in transaction volumes through bank transfers after introducing wire transfers, the firm’s CEO told Cointelegraph.
“By bridging traditional finance with digital assets, we aim to play a key role in the next wave of crypto adoption.”
Is It Too Late to Invest in Crypto? Bitcoin MASS ADOPTION Explained. Source: Cointelegraph
Related: Bitcoin price downside may last 2 months — Analysis
Wire transfers are for high-net-worth individuals and large investments
Transak’s new wire transfer feature is available with a minimum threshold of $2,000 and a maximum of $25,000 per transaction.
This is mainly because wire transfers are the preferred transaction method of high-net-worth individuals, according to Start, who explained:
“Our goal is to offer flexibility and choice, ensuring all users can find a payment method that aligns with their investment objectives.”
Transak has been federally licensed as a money transmitter in the US since early 2022, but regulation isn’t the only hurdle.
Finding a banking partner in the US was just as challenging, according to Max von Hulewicz, the head of expansions at Transak, who said:
“We were fortunate to find a bank in the US that is at the forefront of the digital asset space. As one of their alpha customers, we received substantial support, which was crucial in rolling out this product in a compliant and scalable manner.”
Magazine: Criminal at Bitcoin 2024, BTC Strategic Reserve Bill, and more: Hodler’s Digest, July 28 – Aug. 3
This marks the first time that crypto users in the world’s largest economy will be able to top u their digital asset accounts via wire transfers.
Providing a familiar and secure payment method like wire transfers could bolster crypto adoption and make it more accessible to the mainstream, according to Sami Start, the co-founder and CEO of Transak.
Start told Cointelegraph:
“Wire transfers are one of the most common and trusted methods for transferring funds, and most US users are already comfortable with how the wire transfer system works. Adding this familiar and secure payment method to our extensive list of options is a significant step forward in driving crypto adoption.”
More trusted fiat on-ramps could increase cryptocurrency adoption among mainstream crypto users in the world’s largest economy. The current 560 million crypto users could triple by 2026, according to some experts.
BTC adoption s-curve. Source: Willy Woo
Related: Crypto market crash triggered by ‘aggressive’ selling by Jump Trading: Report
Wire transfers will be a “game-changer”
Previous fiat-to-crypto on-ramps, such as credit cards, come with significant restrictions, including transaction limits and higher fees, compared to wire transfers.
This is partly why wire transfers could help the industry reach the first billion crypto users, according to Start, who explained:
“As people become more comfortable using crypto for everyday transactions, we anticipate rapid growth, hopefully reaching a billion users in the next few years. We firmly believe that wire transfers can be a game-changer in accelerating crypto adoption.”
Bank transfers could significantly boost new investment into the crypto space.
In the United Kingdom, Transak saw an over four-fold increase in transaction volumes through bank transfers after introducing wire transfers, the firm’s CEO told Cointelegraph.
“By bridging traditional finance with digital assets, we aim to play a key role in the next wave of crypto adoption.”
Is It Too Late to Invest in Crypto? Bitcoin MASS ADOPTION Explained. Source: Cointelegraph
Related: Bitcoin price downside may last 2 months — Analysis
Wire transfers are for high-net-worth individuals and large investments
Transak’s new wire transfer feature is available with a minimum threshold of $2,000 and a maximum of $25,000 per transaction.
This is mainly because wire transfers are the preferred transaction method of high-net-worth individuals, according to Start, who explained:
“Our goal is to offer flexibility and choice, ensuring all users can find a payment method that aligns with their investment objectives.”
Transak has been federally licensed as a money transmitter in the US since early 2022, but regulation isn’t the only hurdle.
Finding a banking partner in the US was just as challenging, according to Max von Hulewicz, the head of expansions at Transak, who said:
“We were fortunate to find a bank in the US that is at the forefront of the digital asset space. As one of their alpha customers, we received substantial support, which was crucial in rolling out this product in a compliant and scalable manner.”
Magazine: Criminal at Bitcoin 2024, BTC Strategic Reserve Bill, and more: Hodler’s Digest, July 28 – Aug. 3
Coffeezilla says ‘groundless’ Logan Paul lawsuit aims to ‘crush new investigations’
Stephen Findeisen, more commonly known as “Coffeezilla” on YouTube, responded to internet celebrity Logan Paul’s lawsuit through a video and said that the “groundless” defamation lawsuit may be an attempt to silence another investigation.
On July 27, Paul sued Coffeezilla for defamation over videos about the YouTuber’s non-fungible-token (NFT) project CryptoZoo. The suit alleges that Findeisen published false statements accusing Paul of operating a scam.
On Aug. 5, Findeisen clarified that he is not bing sued over his original videos about the CryptoZoo projects. However, the internet detective said he is being sued over videos and an X post advocating for user refunds.
Coffeezilla says Paul’s lawsuit is groundless
On Jan. 4, Paul shared a site that allows CryptoZoo NFT holders to get their money back through a $2.3 million buyback program. The celebrity said that he would repurchase the NFTs at their original price. However, Findeisen pointed out that there is an ulterior motive behind the move, as users need to waive their claims against Paul if they go through with the refund process.
Findeisen also believes that the refund process only addresses the NFTs and does not make users who purchased Zoo tokens whole. In the video, Findeisen reiterated that Paul only intends to pay back a small part of the losses while fighting off the other victims in court.
The internet detective also described the lawsuit as “groundless, meritless and frivolous.” Findeisen argued that for the lawsuit to be valid, Paul must have suffered financial losses or reputational damage. The online investigator alleges that Paul had already been accused of pump-and-dump schemes before publishing his investigation on the celebrity.
Related: YouTuber Logan Paul argues CryptoZoo ‘isn’t a scam’ in new documentary
Silencing a new investigation
Because of these, Findeisen believes the lawsuit’s purpose is to silence any future investigations and take revenge on the previous ones. The investigator said that the lawsuit came as he requested comments from Paul regarding the celebrity’s involvement in the Liquid Marketplace saga.
On June 24, the Ontario Securities Commission accused the marketplace, which was co-founded by Paul, of being a “multi-layered fraud.”
“This defamation lawsuit feels frivolous even on the surface. But if you dig deeper, there’s an even more compelling story which I personally believe, where the goal is to crush new investigations while taking revenge for the old ones,” Findeisen explained.
Magazine: ‘Treat your first NFT purchase like a first date’ — NFT Collector Suzanne
On July 27, Paul sued Coffeezilla for defamation over videos about the YouTuber’s non-fungible-token (NFT) project CryptoZoo. The suit alleges that Findeisen published false statements accusing Paul of operating a scam.
On Aug. 5, Findeisen clarified that he is not bing sued over his original videos about the CryptoZoo projects. However, the internet detective said he is being sued over videos and an X post advocating for user refunds.
Coffeezilla says Paul’s lawsuit is groundless
On Jan. 4, Paul shared a site that allows CryptoZoo NFT holders to get their money back through a $2.3 million buyback program. The celebrity said that he would repurchase the NFTs at their original price. However, Findeisen pointed out that there is an ulterior motive behind the move, as users need to waive their claims against Paul if they go through with the refund process.
Findeisen also believes that the refund process only addresses the NFTs and does not make users who purchased Zoo tokens whole. In the video, Findeisen reiterated that Paul only intends to pay back a small part of the losses while fighting off the other victims in court.
The internet detective also described the lawsuit as “groundless, meritless and frivolous.” Findeisen argued that for the lawsuit to be valid, Paul must have suffered financial losses or reputational damage. The online investigator alleges that Paul had already been accused of pump-and-dump schemes before publishing his investigation on the celebrity.
Related: YouTuber Logan Paul argues CryptoZoo ‘isn’t a scam’ in new documentary
Silencing a new investigation
Because of these, Findeisen believes the lawsuit’s purpose is to silence any future investigations and take revenge on the previous ones. The investigator said that the lawsuit came as he requested comments from Paul regarding the celebrity’s involvement in the Liquid Marketplace saga.
On June 24, the Ontario Securities Commission accused the marketplace, which was co-founded by Paul, of being a “multi-layered fraud.”
“This defamation lawsuit feels frivolous even on the surface. But if you dig deeper, there’s an even more compelling story which I personally believe, where the goal is to crush new investigations while taking revenge for the old ones,” Findeisen explained.
Magazine: ‘Treat your first NFT purchase like a first date’ — NFT Collector Suzanne
Ronin Network exploited for $9.8M in ETH, white hat hacker suspected
Ronin Network has lost $9.8 million worth of Ether in a potential exploit, adding to the rising number of cryptocurrency hacks in 2024.
Ronin Network, one of the most popular gaming blockchains, lost 3,996 Ether (ETH) tokens worth over $9.8 million.
However, the exploit may originate from a white hat hacker, or ethical hacker who is performing exploits to find the vulnerabilities in a crypto protocol, according to an Aug. 6 X post by PeckShield.
Ronin Network exploit. Source; PeckShieldAlert
After discovering a vulnerability and proving the code is bugged, white hat hackers return the stolen funds. If the Ronin attacker turns out to be such an ethical hacker, the funds could soon be safely returned.
It is not uncommon for hackers with malicious intent to return stolen funds. Earlier in May, a hacker returned $71 million worth of stolen crypto to the victim after the high-profile incident brought significant attention and revealed the hacker's potential IP.
Related: $510B crypto sell-off wipes 2024 gains for top 50 coins
Did a white hat MEV bot steal the $9.8M?
Adding a note of optimism to the event, the exploit was seemingly caused by a maximal extractable value (MEV) bot, a software tool used by validators to analyze arbitrage opportunities across decentralized finance (DeFI).
Since MEV bots automatically implement arbitrage strategies, it is not uncommon for these bots to accidentally exploit a loophole in a protocol.
A closer look at the $9.8 million transaction on the Ronin bridge reveals that it was executed by MEV bot “0x4ab."
Transaction 0x261, $9.8M Ronin drain. Source: Etherscan.
The MEV bot subsequently sent a small part of the funds, or 3.9 Ether tokens, to wallet “0x952,” also known as “beaverbuild,” blockchain data shows.
MEV bots have also been responsible for the $7.6 million Rho Markets exploit in July. The protocol recovered all the missing funds within a week.
Related: Market makers sold over $300M Ether as ETH price crashed below $2,200
This is a developing story, and further information will be added as it becomes available.
Ronin Network, one of the most popular gaming blockchains, lost 3,996 Ether (ETH) tokens worth over $9.8 million.
However, the exploit may originate from a white hat hacker, or ethical hacker who is performing exploits to find the vulnerabilities in a crypto protocol, according to an Aug. 6 X post by PeckShield.
Ronin Network exploit. Source; PeckShieldAlert
After discovering a vulnerability and proving the code is bugged, white hat hackers return the stolen funds. If the Ronin attacker turns out to be such an ethical hacker, the funds could soon be safely returned.
It is not uncommon for hackers with malicious intent to return stolen funds. Earlier in May, a hacker returned $71 million worth of stolen crypto to the victim after the high-profile incident brought significant attention and revealed the hacker's potential IP.
Related: $510B crypto sell-off wipes 2024 gains for top 50 coins
Did a white hat MEV bot steal the $9.8M?
Adding a note of optimism to the event, the exploit was seemingly caused by a maximal extractable value (MEV) bot, a software tool used by validators to analyze arbitrage opportunities across decentralized finance (DeFI).
Since MEV bots automatically implement arbitrage strategies, it is not uncommon for these bots to accidentally exploit a loophole in a protocol.
A closer look at the $9.8 million transaction on the Ronin bridge reveals that it was executed by MEV bot “0x4ab."
Transaction 0x261, $9.8M Ronin drain. Source: Etherscan.
The MEV bot subsequently sent a small part of the funds, or 3.9 Ether tokens, to wallet “0x952,” also known as “beaverbuild,” blockchain data shows.
MEV bots have also been responsible for the $7.6 million Rho Markets exploit in July. The protocol recovered all the missing funds within a week.
Related: Market makers sold over $300M Ether as ETH price crashed below $2,200
This is a developing story, and further information will be added as it becomes available.
Ronin Network exploited for $9.8M in ETH, white hat hacker suspected
Ronin Network has lost $9.8 million worth of Ether in a potential exploit, adding to the rising number of cryptocurrency hacks in 2024.
Ronin Network, one of the most popular gaming blockchains, lost 3,996 Ether (ETH) tokens worth over $9.8 million.
However, the exploit may originate from a white hat hacker, or ethical hacker who is performing exploits to find the vulnerabilities in a crypto protocol, according to an Aug. 6 X post by PeckShield.
Ronin Network exploit. Source; PeckShieldAlert
After discovering a vulnerability and proving the code is bugged, white hat hackers return the stolen funds. If the Ronin attacker turns out to be such an ethical hacker, the funds could soon be safely returned.
It's not uncommon for hackers with malicious intent to return stolen funds either. Earlier in May, a hacker returned $71 million worth of stolen crypto to the victim, after the high-profile incident brought significant attention and revealed the hacker's potential IP.
Related: $510B crypto sell-off wipes 2024 gains for top 50 coins
This is a developing story, and further information will be added as it becomes available.
Ronin Network, one of the most popular gaming blockchains, lost 3,996 Ether (ETH) tokens worth over $9.8 million.
However, the exploit may originate from a white hat hacker, or ethical hacker who is performing exploits to find the vulnerabilities in a crypto protocol, according to an Aug. 6 X post by PeckShield.
Ronin Network exploit. Source; PeckShieldAlert
After discovering a vulnerability and proving the code is bugged, white hat hackers return the stolen funds. If the Ronin attacker turns out to be such an ethical hacker, the funds could soon be safely returned.
It's not uncommon for hackers with malicious intent to return stolen funds either. Earlier in May, a hacker returned $71 million worth of stolen crypto to the victim, after the high-profile incident brought significant attention and revealed the hacker's potential IP.
Related: $510B crypto sell-off wipes 2024 gains for top 50 coins
This is a developing story, and further information will be added as it becomes available.
Euro stablecoin market surges under MiCA
The European Union’s Markets in Crypto-Assets Regulation (MiCA) framework is gradually coming into effect according to its planned implementation timeline. The initial set of regulations, which took effect on July 1, focused on stablecoins and their issuers.
These clear guidelines have both cleaned out the market of players not able to meet regulatory requirements and created a favorable environment for stablecoins pegged to local currency.
One example is a new partnership between the France-based fintech company Next Generation and Ireland-based electronic money institution (EMI) DECTA Ltd, which announced a plan to reintroduce a euro-pegged stablecoin, EURT, on the Stellar blockchain.
According to the involved parties this initiative, launched on Aug. 5, is fully MiCA compliant.
MiCA Rebirth
Next Generation has strong ties to the renowned fintech player Tempo France. This company initially launched EURT in 2017 in collaboration with the Stellar Foundation, pioneering one of the first euro-pegged stablecoins.
However, the absence of a regulatory framework then led to the project’s suspension. Though now, under MiCA, it has classified stablecoins as electronic money tokens (EMTs), aligning them with traditional e-money and necessitating that issuers possess an EMI license or be a credit institution.
This regulatory clarity has transformed the euro-backed stablecoin market, making it more predictable and attractive to investors.
At the time of MiCA’s enactment, one industry analyst told Cointelegraph that they anticipate a potential shift toward euro-backed stablecoins as demand picks up in European markets.
Stablecoins on the rise?
DECTA is already authorized by the Central Bank of Ireland as an EMI, which it will utilize to license to issue EURT, ensuring full regulatory compliance.
Related: Crypto Biz: Stablecoins wave, crypto trading via UAE banks, and more
Suren Hayriyan, the president of Next Generation, said that the current demand for euro-backed stablecoins is around $30 billion with a supply of less than $300 million. The partnership aims to address this gap, with projections indicating a significant growth trajectory for EURT.
At the moment, the euro-back stablecoin market has major players such as Circle with its (EURC) and Tether’s (EURT), which Hayriyan called their “main competitors.”
“However, our robust regulatory compliance and technological infrastructure position us strongly in this evolving market,” he said. Next Generation and DECTA are targeting a launch of EURT by October 2024.
Circle became the first global stablecoin issuer to comply with MiCA and chose France as its European headquarters, citing the country’s “forward-looking” stance on digital asset regulation.
The activation of MiCA is expected to drive substantial growth in the euro-backed stablecoin sector. Market predictions forecast a minimum market capitalization of 15 euro by 2025, reaching 70 billion euro by 2026 and potentially surpassing 2 trillion euro by 2028.
As of July 31, stablecoin market capitalization of stablecoins was on the rise, with an increase of 2.1% to $164 billion in July. This marked the highest levels since April 2022, and stablecoins such as USD Coin (USDC) saw their trading volume soar by 48%.
Asia Express: WazirX hackers prepped 8 days before attack, swindlers fake fiat for USDT
These clear guidelines have both cleaned out the market of players not able to meet regulatory requirements and created a favorable environment for stablecoins pegged to local currency.
One example is a new partnership between the France-based fintech company Next Generation and Ireland-based electronic money institution (EMI) DECTA Ltd, which announced a plan to reintroduce a euro-pegged stablecoin, EURT, on the Stellar blockchain.
According to the involved parties this initiative, launched on Aug. 5, is fully MiCA compliant.
MiCA Rebirth
Next Generation has strong ties to the renowned fintech player Tempo France. This company initially launched EURT in 2017 in collaboration with the Stellar Foundation, pioneering one of the first euro-pegged stablecoins.
However, the absence of a regulatory framework then led to the project’s suspension. Though now, under MiCA, it has classified stablecoins as electronic money tokens (EMTs), aligning them with traditional e-money and necessitating that issuers possess an EMI license or be a credit institution.
This regulatory clarity has transformed the euro-backed stablecoin market, making it more predictable and attractive to investors.
At the time of MiCA’s enactment, one industry analyst told Cointelegraph that they anticipate a potential shift toward euro-backed stablecoins as demand picks up in European markets.
Stablecoins on the rise?
DECTA is already authorized by the Central Bank of Ireland as an EMI, which it will utilize to license to issue EURT, ensuring full regulatory compliance.
Related: Crypto Biz: Stablecoins wave, crypto trading via UAE banks, and more
Suren Hayriyan, the president of Next Generation, said that the current demand for euro-backed stablecoins is around $30 billion with a supply of less than $300 million. The partnership aims to address this gap, with projections indicating a significant growth trajectory for EURT.
At the moment, the euro-back stablecoin market has major players such as Circle with its (EURC) and Tether’s (EURT), which Hayriyan called their “main competitors.”
“However, our robust regulatory compliance and technological infrastructure position us strongly in this evolving market,” he said. Next Generation and DECTA are targeting a launch of EURT by October 2024.
Circle became the first global stablecoin issuer to comply with MiCA and chose France as its European headquarters, citing the country’s “forward-looking” stance on digital asset regulation.
The activation of MiCA is expected to drive substantial growth in the euro-backed stablecoin sector. Market predictions forecast a minimum market capitalization of 15 euro by 2025, reaching 70 billion euro by 2026 and potentially surpassing 2 trillion euro by 2028.
As of July 31, stablecoin market capitalization of stablecoins was on the rise, with an increase of 2.1% to $164 billion in July. This marked the highest levels since April 2022, and stablecoins such as USD Coin (USDC) saw their trading volume soar by 48%.
Asia Express: WazirX hackers prepped 8 days before attack, swindlers fake fiat for USDT
Robinhood suspends 24-hour trades for 8 hours
Cryptocurrency-friendly stock trading app Robinhood saw its 24-hour market’s execution venue, Blue Ocean ATS (BOATs), suspended for overnight trading on Aug. 6.
Robinhood’s support account, AskRobinhood, took to X on Aug. 5 to announce that BOATs halted overnight trading on Robinhood from 12:00 am UTC to 8:00 am UTC on Aug. 6.
“You may cancel your order at any time, and can still place an order for another trading session,” Robinhood’s support wrote, adding that all open trades as of 12:00 am UTC would be routed for execution in around eight hours.
Source: AskRobinhood
Robinhood allegedly halted 24-hour trading for two days in a row
Robinhood’s latest 24-hour trading halt followed another alleged overnight suspension by BOATs on the previous day, with multiple users reporting on the issue on Aug. 5. The alleged suspension came amid a global stock market crash on Monday, with Japan’s Nikkei seeing its most significant decline since Black Monday in 1987.
Robinhood didn’t explicitly admit the trading halt to Cointelegraph on Aug. 5, only stating that the platform was operating at the time of communication.
“Our overnight trading session is currently operating,” a spokesperson for Robinhood stated when asked to confirm or deny the 24-hour trading service halt.
Introduced in May 2023, the Robinhood 24-hour market service allows customers to invest outside traditional trading hours. For its 24-hour market, Robinhood uses BOATs to execute overnight trading orders.
According to a support page on Robinhood, BOATs has its “own risk controls to prevent stocks from trading more than 20% above or below the price established near the end of an extended hours trading session.” The page added:
“Public exchanges have similar controls to prevent extreme price movements during market hours, including limit up and limit down halts [...]. This means individual securities in the 24-hour market won’t trade outside these pricing bands. BOATS may also reject orders with limit prices outside these price bands.”
According to social media reports, Robinhood wasn’t the only brokerage platform experiencing issues due to the stock market volatility. Other brokerage platforms, such as Charles Schwab, Fidelity, Vanguard, TD Ameritrade, E-Trade, UPS and CenturyLink, have reportedly experienced trading outages as well.
Multiple Robinhood users complain about canceled trades
Multiple disgruntled investors publicly complained about canceled trades on X in response to Robinhood’s suspension announcement.
“What about my shares of Nvidia that I purchased last night, which were up nearly 10% before you clawed them back this morning?” one alleged Robinhood user, @YodasMaster13, wrote on X.
According to a screenshot shared by the investor, Robinhood sent him an email that all trades executed during the suspension period would be “canceled due to an issue experienced by Blue Ocean ATS.”
Source: YodasMaster13/AskRobinhood
A number of investors also called on United States regulators to check whether the trading halt was in accordance with US laws.
Related: Cathie Wood’s ARK resumes Coinbase buying as BTC drops below $50K
“How is any of this even legal?” another disgruntled investor wrote on X, asking Robinhood to provide the reason for turning off the 24-hour trading execution.
One alleged Robinhood investor, who reported losing $500 due to the BOATs’ suspension, also stressed that the platform had “zero record” of its purchases during the suspension period.
“I wonder what FINRA would have to say about stealing my profits,” the user wrote.
Cointelegraph approached Robinhood for a comment regarding the latest halt on its 24-hour trading venue but did not receive a response at the time of publication.
Magazine: ‘Elon Musk at Bitcoin 2024’ scam, Lazarus Group hacks, MOG phishing: Crypto-Sec
Robinhood’s support account, AskRobinhood, took to X on Aug. 5 to announce that BOATs halted overnight trading on Robinhood from 12:00 am UTC to 8:00 am UTC on Aug. 6.
“You may cancel your order at any time, and can still place an order for another trading session,” Robinhood’s support wrote, adding that all open trades as of 12:00 am UTC would be routed for execution in around eight hours.
Source: AskRobinhood
Robinhood allegedly halted 24-hour trading for two days in a row
Robinhood’s latest 24-hour trading halt followed another alleged overnight suspension by BOATs on the previous day, with multiple users reporting on the issue on Aug. 5. The alleged suspension came amid a global stock market crash on Monday, with Japan’s Nikkei seeing its most significant decline since Black Monday in 1987.
Robinhood didn’t explicitly admit the trading halt to Cointelegraph on Aug. 5, only stating that the platform was operating at the time of communication.
“Our overnight trading session is currently operating,” a spokesperson for Robinhood stated when asked to confirm or deny the 24-hour trading service halt.
Introduced in May 2023, the Robinhood 24-hour market service allows customers to invest outside traditional trading hours. For its 24-hour market, Robinhood uses BOATs to execute overnight trading orders.
According to a support page on Robinhood, BOATs has its “own risk controls to prevent stocks from trading more than 20% above or below the price established near the end of an extended hours trading session.” The page added:
“Public exchanges have similar controls to prevent extreme price movements during market hours, including limit up and limit down halts [...]. This means individual securities in the 24-hour market won’t trade outside these pricing bands. BOATS may also reject orders with limit prices outside these price bands.”
According to social media reports, Robinhood wasn’t the only brokerage platform experiencing issues due to the stock market volatility. Other brokerage platforms, such as Charles Schwab, Fidelity, Vanguard, TD Ameritrade, E-Trade, UPS and CenturyLink, have reportedly experienced trading outages as well.
Multiple Robinhood users complain about canceled trades
Multiple disgruntled investors publicly complained about canceled trades on X in response to Robinhood’s suspension announcement.
“What about my shares of Nvidia that I purchased last night, which were up nearly 10% before you clawed them back this morning?” one alleged Robinhood user, @YodasMaster13, wrote on X.
According to a screenshot shared by the investor, Robinhood sent him an email that all trades executed during the suspension period would be “canceled due to an issue experienced by Blue Ocean ATS.”
Source: YodasMaster13/AskRobinhood
A number of investors also called on United States regulators to check whether the trading halt was in accordance with US laws.
Related: Cathie Wood’s ARK resumes Coinbase buying as BTC drops below $50K
“How is any of this even legal?” another disgruntled investor wrote on X, asking Robinhood to provide the reason for turning off the 24-hour trading execution.
One alleged Robinhood investor, who reported losing $500 due to the BOATs’ suspension, also stressed that the platform had “zero record” of its purchases during the suspension period.
“I wonder what FINRA would have to say about stealing my profits,” the user wrote.
Cointelegraph approached Robinhood for a comment regarding the latest halt on its 24-hour trading venue but did not receive a response at the time of publication.
Magazine: ‘Elon Musk at Bitcoin 2024’ scam, Lazarus Group hacks, MOG phishing: Crypto-Sec
Ethical hackers share tips on how to protect your crypto
As malicious hackers continue to threaten the security of the digital assets space, those with the same skill sets but using their talents for good shared what crypto users can do to cover their bases against cybersecurity threats.
On July 26, malicious actors used a social engineering tactic to trick crypto users into downloading fake conferencing software to steal their crypto. Scammers posed as hiring staff of legitimate crypto companies advertising fake job positions to gain access to crypto wallets and steal user funds.
In an interview with Cointelegraph, ethical hackers Kirill Firsov and Marwan Hachem shared details about an investigation they conducted into the fake conferencing software called Meetly.gg and detailed what users can do to prevent themselves from losing their crypto.
Uncovering software used by hackers
Hachem, the chief operating officer of the cybersecurity firm FearsOff, said that on July 26, their team received a distress call from a C-level official of a crypto firm. The cybersecurity professional said that as they tried to investigate the issue, they found out how the hackers operated.
Firsov, the founder and CEO of the cybersecurity firm FearsOff, explained that they had downloaded the fake software and had run it into an isolated environment to find out how it worked. The security professional said that after launching the app, it takes the user’s data and sends it to the malicious actors. He explained:
“After you launch the application, it immediately sends all the critical information about the computer, including all critical data and crypto wallets, to an external server.”
Firsov explained that hackers are looking for data related to crypto wallets and are searching for details like passwords, access codes and keys. “People usually keep passwords not only in safe environments but also in plain text and nodes,” Firsov added.
The cybersecurity professional explained that hackers will use whatever data they find to reach their goal of stealing user’s crypto.
During their investigation, the security executives also noted that they uncovered another piece of software used by the same scammers. They warned users of a site called Clusee.com, which hackers use to steal user funds.
On Aug. 5, the security professionals tracked the scammers and noted that they have rebranded their “Meetly.gg” site and are planning to redeploy it with a new name called “Meeten.gg.”
Related: FBI issues warning about scammers impersonating crypto exchanges
How to protect your crypto
When asked how users can avoid falling prey to such scammers, Hachem gave some tips, including compartmentalizing their devices and taking time to know their counterparties.
According to the security professional, compartmentalizing or using different devices to interact with unknown sources can help prevent compromises.
“I know 99% of people don’t keep one device or a couple of devices for this kind of interaction with people like potential employees, employers, investors or projects.”
Hachem explained that this could help users isolate the software in case users fall for the social engineering aspect of the attack.
The FearsOff executive also highlighted that users should spend more time doing their due diligence and getting to know their counterparties, as many of these attackers use trusted platforms like LinkedIn to perform attacks.
“These days, we have to take a deep breath, take a couple of steps back whenever somebody is trying to share something to install, for whatever reason,” Hachem added.
Magazine: Asia Express: WazirX hackers prepped 8 days before attack, swindlers fake fiat for USDT
On July 26, malicious actors used a social engineering tactic to trick crypto users into downloading fake conferencing software to steal their crypto. Scammers posed as hiring staff of legitimate crypto companies advertising fake job positions to gain access to crypto wallets and steal user funds.
In an interview with Cointelegraph, ethical hackers Kirill Firsov and Marwan Hachem shared details about an investigation they conducted into the fake conferencing software called Meetly.gg and detailed what users can do to prevent themselves from losing their crypto.
Uncovering software used by hackers
Hachem, the chief operating officer of the cybersecurity firm FearsOff, said that on July 26, their team received a distress call from a C-level official of a crypto firm. The cybersecurity professional said that as they tried to investigate the issue, they found out how the hackers operated.
Firsov, the founder and CEO of the cybersecurity firm FearsOff, explained that they had downloaded the fake software and had run it into an isolated environment to find out how it worked. The security professional said that after launching the app, it takes the user’s data and sends it to the malicious actors. He explained:
“After you launch the application, it immediately sends all the critical information about the computer, including all critical data and crypto wallets, to an external server.”
Firsov explained that hackers are looking for data related to crypto wallets and are searching for details like passwords, access codes and keys. “People usually keep passwords not only in safe environments but also in plain text and nodes,” Firsov added.
The cybersecurity professional explained that hackers will use whatever data they find to reach their goal of stealing user’s crypto.
During their investigation, the security executives also noted that they uncovered another piece of software used by the same scammers. They warned users of a site called Clusee.com, which hackers use to steal user funds.
On Aug. 5, the security professionals tracked the scammers and noted that they have rebranded their “Meetly.gg” site and are planning to redeploy it with a new name called “Meeten.gg.”
Related: FBI issues warning about scammers impersonating crypto exchanges
How to protect your crypto
When asked how users can avoid falling prey to such scammers, Hachem gave some tips, including compartmentalizing their devices and taking time to know their counterparties.
According to the security professional, compartmentalizing or using different devices to interact with unknown sources can help prevent compromises.
“I know 99% of people don’t keep one device or a couple of devices for this kind of interaction with people like potential employees, employers, investors or projects.”
Hachem explained that this could help users isolate the software in case users fall for the social engineering aspect of the attack.
The FearsOff executive also highlighted that users should spend more time doing their due diligence and getting to know their counterparties, as many of these attackers use trusted platforms like LinkedIn to perform attacks.
“These days, we have to take a deep breath, take a couple of steps back whenever somebody is trying to share something to install, for whatever reason,” Hachem added.
Magazine: Asia Express: WazirX hackers prepped 8 days before attack, swindlers fake fiat for USDT
Bitcoin speculators realize $850M losses in sub-$50K BTC price dump
Bitcoin (BTC) long-term holders only sold around $600,000 of BTC during the flash crash to $49,500, data shows.
In one of its recent Quicktake blog posts, onchain analytics platform CryptoQuant revealed a startling contrast between Bitcoin hodler cohorts.
Bitcoin "diamond hands" sell just $600,000 at a loss
Bitcoin giving up $50,000 during Aug. 5 came as part of mass panic as Asian stock markets unwound months of gains.
The latest data now shows that BTC sales came as a result as BTC/USD cemented $20,000 losses in a single week.
Analyzing the age of coins involved in unchained transactions, however, CryptoQuant contributor Cauê Oliveira showed that it was overwhelmingly the “youngest” coins being resold at a loss.
“When we look at the spent output by age range, it is clear that the largest volume of on-chain movements was derived from coins less than 1 week old,” he sumamrized.
Coin “age” refers to the amount of time a given unit of BTC spent dormant before being used in its latest transaction. Traditionally, coins with an age of up to 155 days are linked to short-term holders (STHs) or speculators — those with no history of “hodling” and a focus on profiteering.
“In total, in the age ranges up to 1 day and 1 day to 1 week alone, more than US$ 5.2 billion was moved in a single hour,” Oliveira continued.
Compare that to behavior of coins already stationary for an extended period, these likely owned by long-term holders (LTHs), and the contrast in investor mindset is immediately visible.
“When we delve deeper into the spending pattern, we had about US$ 850 million in loss realization in this downward movement,” Oliveira noted.
“However, only US$ 600 thousand were realized by LTHs. The rest was realized by short-term investors. The largest volume is concentrated in investors up to 3 months old, indicating that the price drop is putting pressure on newcomers to capitulate.”
Bitcoin spent output age bands (screenshot). Source: CryptoQuant
The historical significance of the “huge” number of loss-making onchain transactions was also noted by Crypto investor and YouTuber Quinten, who on X cited data from fellow CryptoQuant contributor Axel Adler Jr.
Bitcoin short-term holder spent output profit ratio (SOPR). Source: Quinten/X
BTC price faces "second wave" of chaos
While BTC/USD has since bounced by more than 10% versus its six-month lows, data from Cointelegraph Markets Pro and TradingView confirms, not everyone believes that the worst is over.
Related: Bitcoin decline is similar to the start of the 2016 bull run — Peter Brandt
As Cointelegraph reported, traders are still eyeing BTC price targets in the $40,000 range.
In a warning to X followers on Aug. 6, meanwhile, Arthur Hayes, former CEO of crypto exchange BitMEX, said that the relief bounce across markets would not last.
“That was the first wave. Now we wait for bodies of TradFi over leveraged muppets to surface,” he wrote, referring to victims of the Japanese yen carry trade thought to form the bulk of the fallout from the week’s Nikkei meltdown.
“Then wave 2 begins. If there is going to be a bailout the mrkt needs to deliver more pain by Fri. Enjoy the respite for the war shall continue.”
BTC/USD 1-day chart. Source: TradingView
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
In one of its recent Quicktake blog posts, onchain analytics platform CryptoQuant revealed a startling contrast between Bitcoin hodler cohorts.
Bitcoin "diamond hands" sell just $600,000 at a loss
Bitcoin giving up $50,000 during Aug. 5 came as part of mass panic as Asian stock markets unwound months of gains.
The latest data now shows that BTC sales came as a result as BTC/USD cemented $20,000 losses in a single week.
Analyzing the age of coins involved in unchained transactions, however, CryptoQuant contributor Cauê Oliveira showed that it was overwhelmingly the “youngest” coins being resold at a loss.
“When we look at the spent output by age range, it is clear that the largest volume of on-chain movements was derived from coins less than 1 week old,” he sumamrized.
Coin “age” refers to the amount of time a given unit of BTC spent dormant before being used in its latest transaction. Traditionally, coins with an age of up to 155 days are linked to short-term holders (STHs) or speculators — those with no history of “hodling” and a focus on profiteering.
“In total, in the age ranges up to 1 day and 1 day to 1 week alone, more than US$ 5.2 billion was moved in a single hour,” Oliveira continued.
Compare that to behavior of coins already stationary for an extended period, these likely owned by long-term holders (LTHs), and the contrast in investor mindset is immediately visible.
“When we delve deeper into the spending pattern, we had about US$ 850 million in loss realization in this downward movement,” Oliveira noted.
“However, only US$ 600 thousand were realized by LTHs. The rest was realized by short-term investors. The largest volume is concentrated in investors up to 3 months old, indicating that the price drop is putting pressure on newcomers to capitulate.”
Bitcoin spent output age bands (screenshot). Source: CryptoQuant
The historical significance of the “huge” number of loss-making onchain transactions was also noted by Crypto investor and YouTuber Quinten, who on X cited data from fellow CryptoQuant contributor Axel Adler Jr.
Bitcoin short-term holder spent output profit ratio (SOPR). Source: Quinten/X
BTC price faces "second wave" of chaos
While BTC/USD has since bounced by more than 10% versus its six-month lows, data from Cointelegraph Markets Pro and TradingView confirms, not everyone believes that the worst is over.
Related: Bitcoin decline is similar to the start of the 2016 bull run — Peter Brandt
As Cointelegraph reported, traders are still eyeing BTC price targets in the $40,000 range.
In a warning to X followers on Aug. 6, meanwhile, Arthur Hayes, former CEO of crypto exchange BitMEX, said that the relief bounce across markets would not last.
“That was the first wave. Now we wait for bodies of TradFi over leveraged muppets to surface,” he wrote, referring to victims of the Japanese yen carry trade thought to form the bulk of the fallout from the week’s Nikkei meltdown.
“Then wave 2 begins. If there is going to be a bailout the mrkt needs to deliver more pain by Fri. Enjoy the respite for the war shall continue.”
BTC/USD 1-day chart. Source: TradingView
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
$510B crypto sell-off wipes 2024 gains for top 50 coins
Over half of the 50 largest cryptocurrencies by market capitalization are in the red following the biggest crypto sell-off in over a year.
The crypto market saw a $510 billion drop in total market capitalization.
Following the sell-off, over 60% of the top 50 cryptocurrencies lost all the gains made during 2024, according to CryptoQuant author Binhdangg, who wrote in an Aug. 6 X post:
“After Black Monday, 60% of coins in the top 50 have removed all profit since the beginning of 2024 and even get losses.”
Top 50 cryptocurrencies, performance. Source: Binhdangg
Following the sell-off, Ether (ETH) price briefly dipped to a five-month low below $2,200. Losing this psychological mark could invite more panic selling and downside pressure for the entire market.
Related: Analysts warn of further Bitcoin downside — Could BTC revisit $42K?
What caused the crypto market sell-off?
The brutal crypto market sell-off was caused by a combination of macroeconomic and industry-specific developments.
On Aug. 5, the Bank of Japan announced that it was raising its interest rate from 0% to 0.25%.
Japan’s decision had a direct impact on the United States stock market and Bitcoin price as well, as traders borrowed Japanese yen at low interest rates to buy assets in the US market.
Meanwhile, five of the top market makers have sold a total of 130,000 Ether worth $290 million at today’s price since Aug. 3, while Ether’s price crashed from $3,000 to below $2,200.
The market makers include Wintermute, which sold over 47,000 ETH, followed by Jump Trading, with over 36,000 ETH, and Flow Traders, with 3,620 ETH, in third place.
The Ether selling from market makers has significantly contributed to Ether’s price decline.
Related: Bitcoin price downside may last 2 months — Analysis
Memecoins see the biggest loss, led by WIF and PEPE
Looking at the 50 largest tokens by market capitalization, some of this cycle’s most popular memecoins have taken the biggest loss.
On the weekly chart, Solana-based memecoin Dogwifhat (WIF) saw the biggest loss, falling over 41% during the past week, to trade at $1.38 as of 8:37 am UTC, Aug. 6, according to Cointelegraph data.
WIF/USD, 1-week chart. Source: Cointelegraph
Frog-themed memecoin Pepe (PEPE) saw the second-biggest weekly loss, falling over 34% to $0.057781, which is over 53% down from its all-time high recorded at the end of May.
Because memecoins lack intrinsic value, their price increases are primarily driven by social media hype and attention from retail investors. As a result, meme tokens are often the hardest hit during a crypto market correction.
Magazine: How crypto bots are ruining crypto — including auto memecoin rug pulls
The crypto market saw a $510 billion drop in total market capitalization.
Following the sell-off, over 60% of the top 50 cryptocurrencies lost all the gains made during 2024, according to CryptoQuant author Binhdangg, who wrote in an Aug. 6 X post:
“After Black Monday, 60% of coins in the top 50 have removed all profit since the beginning of 2024 and even get losses.”
Top 50 cryptocurrencies, performance. Source: Binhdangg
Following the sell-off, Ether (ETH) price briefly dipped to a five-month low below $2,200. Losing this psychological mark could invite more panic selling and downside pressure for the entire market.
Related: Analysts warn of further Bitcoin downside — Could BTC revisit $42K?
What caused the crypto market sell-off?
The brutal crypto market sell-off was caused by a combination of macroeconomic and industry-specific developments.
On Aug. 5, the Bank of Japan announced that it was raising its interest rate from 0% to 0.25%.
Japan’s decision had a direct impact on the United States stock market and Bitcoin price as well, as traders borrowed Japanese yen at low interest rates to buy assets in the US market.
Meanwhile, five of the top market makers have sold a total of 130,000 Ether worth $290 million at today’s price since Aug. 3, while Ether’s price crashed from $3,000 to below $2,200.
The market makers include Wintermute, which sold over 47,000 ETH, followed by Jump Trading, with over 36,000 ETH, and Flow Traders, with 3,620 ETH, in third place.
The Ether selling from market makers has significantly contributed to Ether’s price decline.
Related: Bitcoin price downside may last 2 months — Analysis
Memecoins see the biggest loss, led by WIF and PEPE
Looking at the 50 largest tokens by market capitalization, some of this cycle’s most popular memecoins have taken the biggest loss.
On the weekly chart, Solana-based memecoin Dogwifhat (WIF) saw the biggest loss, falling over 41% during the past week, to trade at $1.38 as of 8:37 am UTC, Aug. 6, according to Cointelegraph data.
WIF/USD, 1-week chart. Source: Cointelegraph
Frog-themed memecoin Pepe (PEPE) saw the second-biggest weekly loss, falling over 34% to $0.057781, which is over 53% down from its all-time high recorded at the end of May.
Because memecoins lack intrinsic value, their price increases are primarily driven by social media hype and attention from retail investors. As a result, meme tokens are often the hardest hit during a crypto market correction.
Magazine: How crypto bots are ruining crypto — including auto memecoin rug pulls
Ethereum’s quick rebound positions ETH price for 100% rally
Ethereum’s native token, Ether (ETH), is undergoing a sharp bounce after dropping to its eight-month low on Aug. 5. Interestingly, this rebound shows similarities with the one in October 2023 that preceded a 168% price boom.
Has ETH price already bottomed?
As of Aug. 6, the ETH/USD pair showed signs of bullish reversal after rebounding from a support confluence comprising the lower trendline of its prevailing ascending channel pattern and the 200-week exponential moving average (200-week EMA; the blue wave).
Simultaneously, the bounce accompanies a rise in Ether’s weekly relative strength index (RSI) reading from 39.40, just over nine points above the oversold threshold.
ETH/USD weekly price chart. Source: TradingView
Ether technical indicators looked the same in October 2023, which—combined with supportive fundamentals such as the pre-halving rally and the launch of Bitcoin ETFs—helped the price rally toward the ascending channel's upper trendline.
If the fractal plays out as intended, Ether has already bottomed out at its Aug. 5 low of around $2,128 and is now rallying toward the ascending channel’s upper trendline at around $4,560. When measured from the current price levels, this amounts to an over 100% rally by 2024.
Rate cuts may further boost Ethereum’s upside
From a fundamental perspective, the anticipated US Federal Reserve rate cuts could increase demand for Ether as traders seek higher returns from riskier assets and move away from lower-yielding options like government bonds.
Bond traders believe the US economy is deteriorating so rapidly that the Fed may be forced to cut interest rates aggressively before their next meeting to prevent a recession. Concerns about high inflation have faded, replaced by fears of economic slowdown.
Traders now estimate a 60% chance of an emergency 0.25% rate cut within a week, according to Bloomberg. Moreover, CME data shows increasing probabilities of three rate cuts by 2024.
Target rate probabilities for September. Source: CME
The scenario is similar to March 2020, when the market sharply rebounded after the Fed’s intervention in response to the COVID-19 market crash.
Source: X
"The final capitulation indeed as it hit that lowest point as similarly did in 2020 which signaled a bottom," noted market analyst Milkybull Crypto about the broader altcoin market, adding:
"I don't think this time is different."
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Has ETH price already bottomed?
As of Aug. 6, the ETH/USD pair showed signs of bullish reversal after rebounding from a support confluence comprising the lower trendline of its prevailing ascending channel pattern and the 200-week exponential moving average (200-week EMA; the blue wave).
Simultaneously, the bounce accompanies a rise in Ether’s weekly relative strength index (RSI) reading from 39.40, just over nine points above the oversold threshold.
ETH/USD weekly price chart. Source: TradingView
Ether technical indicators looked the same in October 2023, which—combined with supportive fundamentals such as the pre-halving rally and the launch of Bitcoin ETFs—helped the price rally toward the ascending channel's upper trendline.
If the fractal plays out as intended, Ether has already bottomed out at its Aug. 5 low of around $2,128 and is now rallying toward the ascending channel’s upper trendline at around $4,560. When measured from the current price levels, this amounts to an over 100% rally by 2024.
Rate cuts may further boost Ethereum’s upside
From a fundamental perspective, the anticipated US Federal Reserve rate cuts could increase demand for Ether as traders seek higher returns from riskier assets and move away from lower-yielding options like government bonds.
Bond traders believe the US economy is deteriorating so rapidly that the Fed may be forced to cut interest rates aggressively before their next meeting to prevent a recession. Concerns about high inflation have faded, replaced by fears of economic slowdown.
Traders now estimate a 60% chance of an emergency 0.25% rate cut within a week, according to Bloomberg. Moreover, CME data shows increasing probabilities of three rate cuts by 2024.
Target rate probabilities for September. Source: CME
The scenario is similar to March 2020, when the market sharply rebounded after the Fed’s intervention in response to the COVID-19 market crash.
Source: X
"The final capitulation indeed as it hit that lowest point as similarly did in 2020 which signaled a bottom," noted market analyst Milkybull Crypto about the broader altcoin market, adding:
"I don't think this time is different."
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
India demands $86M from Binance in unpaid GST taxes
Indian law enforcement agencies demanded $86 million (722 crore Indian rupees) in unpaid taxes from crypto exchange Binance.
Binance, along with numerous other offshore crypto exchanges, was banned in India in January 2024 for noncompliance with local regulations. However, in April, Binance revealed its intent to restart its crypto trading operations in the region after paying pending taxes.
On Aug. 6, the Directorate General of Goods and Service Tax Intelligence (DGGI) — an Indian law enforcement agency — demanded 86 million from Binance under the Goods and Services Tax (GST), according to The Times of India.
The DGGI notice to Binance is the first tax demand levied by the Indian government on any crypto exchange.
Crypto tax obligations in India
Indian law requires all crypto service providers and investors to pay a 1% TDS on every crypto transaction, irrespective of its value. In addition, all profits booked on crypto investments attract a 30% tax.
While Indian crypto exchanges, such as WazirX and CoinDCX, had implemented internal systems to simplify tax obligations for their user base, offshore exchanges failed to enforce the requirement at the time.
This is a developing story, and further information will be added as it becomes available.
Binance, along with numerous other offshore crypto exchanges, was banned in India in January 2024 for noncompliance with local regulations. However, in April, Binance revealed its intent to restart its crypto trading operations in the region after paying pending taxes.
On Aug. 6, the Directorate General of Goods and Service Tax Intelligence (DGGI) — an Indian law enforcement agency — demanded 86 million from Binance under the Goods and Services Tax (GST), according to The Times of India.
The DGGI notice to Binance is the first tax demand levied by the Indian government on any crypto exchange.
Crypto tax obligations in India
Indian law requires all crypto service providers and investors to pay a 1% TDS on every crypto transaction, irrespective of its value. In addition, all profits booked on crypto investments attract a 30% tax.
While Indian crypto exchanges, such as WazirX and CoinDCX, had implemented internal systems to simplify tax obligations for their user base, offshore exchanges failed to enforce the requirement at the time.
This is a developing story, and further information will be added as it becomes available.
Bitcoin trading volume recorded post-halving ATH as crypto market bled
Bitcoin (BTC) transactions on crypto exchanges skyrocketed amid turbulent market conditions, marking a new all-time high in trading volume in the fourth cycle of Bitcoin halving.
On Aug. 5, numerous crypto traders suffered huge losses after having their positions liquidated due to falling prices of prominent cryptocurrencies, including Bitcoin, Ether (ETH) and Solana (SOL). As a result of the commotion, some crypto investors sold their Bitcoin holdings to minimize losses, while others chose to purchase the heavily discounted BTC at the $50,000 range.
According to Blockchain.com data, the total United States dollar value of trading volume on major Bitcoin exchanges exceeded $1.14 billion on Aug. 6, as shown below.
The total USD value of Bitcoin trading volume on major crypto exchanges. Source: Blockchain.com
Falling market prices causes spike in Bitcoin transactions
A similar value of transactions was last recorded in March, long before the fourth Bitcoin halving was completed on April 20. Post-halving, the daily exchange trade volume on Bitcoin exchanges maintained an average of $30 million.
It is important to note that Blockchain.com collects data from top crypto exchanges and some OTC (over-the-counter) markets. Therefore, the actual total trading volume is much higher than reported.
Data from Dune Analytics show that over 90% of transactions that went through the Bitcoin network on Aug. 5 were BTC. Other prominent Bitcoin protocols, such as Ordinals, BRC-20 and Runes, together took up less than 9% of the Bitcoin network bandwidth.
Share of Bitcoin transactions, by type of protocol. Source: Dune Analytics
Related: Over $1B wiped out in crypto liquidations as global markets suffer
Cashing in on discounted Bitcoin and Ethereum
The momentary crypto crash brought down Bitcoin and Ethereum prices by more than 10% and 20%, respectively. Cryptocurrency hackers saw this dip as an opportunity to buy up heavily discounted Ether using stolen funds from previous heists.
Nomad bridge exploiter used 39.75 million Dai (DAI) tokens, which were stolen in August 2022, to buy 16,892 ETH.
Source: Lookonchain
Adding to blockchain analytics firm Lookonchain’s findings, blockchain investigation firm PeckShield noted that the Nomad exploiter concurrently sent 17.75 ETH to an intermediary Ethereum address. As of Aug. 5, the hacker transferred approximately 2,400 ETH (worth around $7 million) to Tornado Cash.
Magazine: How crypto bots are ruining crypto — including auto memecoin rug pulls
On Aug. 5, numerous crypto traders suffered huge losses after having their positions liquidated due to falling prices of prominent cryptocurrencies, including Bitcoin, Ether (ETH) and Solana (SOL). As a result of the commotion, some crypto investors sold their Bitcoin holdings to minimize losses, while others chose to purchase the heavily discounted BTC at the $50,000 range.
According to Blockchain.com data, the total United States dollar value of trading volume on major Bitcoin exchanges exceeded $1.14 billion on Aug. 6, as shown below.
The total USD value of Bitcoin trading volume on major crypto exchanges. Source: Blockchain.com
Falling market prices causes spike in Bitcoin transactions
A similar value of transactions was last recorded in March, long before the fourth Bitcoin halving was completed on April 20. Post-halving, the daily exchange trade volume on Bitcoin exchanges maintained an average of $30 million.
It is important to note that Blockchain.com collects data from top crypto exchanges and some OTC (over-the-counter) markets. Therefore, the actual total trading volume is much higher than reported.
Data from Dune Analytics show that over 90% of transactions that went through the Bitcoin network on Aug. 5 were BTC. Other prominent Bitcoin protocols, such as Ordinals, BRC-20 and Runes, together took up less than 9% of the Bitcoin network bandwidth.
Share of Bitcoin transactions, by type of protocol. Source: Dune Analytics
Related: Over $1B wiped out in crypto liquidations as global markets suffer
Cashing in on discounted Bitcoin and Ethereum
The momentary crypto crash brought down Bitcoin and Ethereum prices by more than 10% and 20%, respectively. Cryptocurrency hackers saw this dip as an opportunity to buy up heavily discounted Ether using stolen funds from previous heists.
Nomad bridge exploiter used 39.75 million Dai (DAI) tokens, which were stolen in August 2022, to buy 16,892 ETH.
Source: Lookonchain
Adding to blockchain analytics firm Lookonchain’s findings, blockchain investigation firm PeckShield noted that the Nomad exploiter concurrently sent 17.75 ETH to an intermediary Ethereum address. As of Aug. 5, the hacker transferred approximately 2,400 ETH (worth around $7 million) to Tornado Cash.
Magazine: How crypto bots are ruining crypto — including auto memecoin rug pulls
Cathie Wood’s ARK resumes Coinbase buying as BTC drops below $50K
Cathie Wood's investment firm ARK Invest is back to buying the Coinbase (COIN) stock amid a major market sell-off, with Bitcoin (BTC) briefly dropping below $50,000.
On Aug. 5, ARK purchased 28,632 Coinbase shares, resuming buying after a long period of dumping the stock in 2024.
The purchase cost $5.4 million, with COIN closing at $189.5 on Aug. 6, according to data from TradingView.
ARK bags Coinbase shares as Bitcoin tumbles 20%
ARK’s return to buying Coinbase came amid a significant decline in cryptocurrency markets, triggered by massive volatility across traditional equity markets.
On Aug. 5, Bitcoin plummeted below $50,000 for the first time since February 2024, briefly dropping to as low as $49,800, according to data from CoinGecko. The price drop erased much of Bitcoin’s gains over the past few months, as BTC tumbled more than 20% from around $63,000 on Aug. 1 before recovering at around $55,000.
Bitcoin (BTC) seven-day price chart. Source: CoinGecko
At the time of writing, Bitcoin is trading at $55,661, up around 6% over the past 24 hours, but still down 16% over the past seven days, according to CoinGecko.
As previously mentioned, the Coinbase stock the Bitcoin price, with COIN reflecting the state of the cryptocurrency market. Over the past 12 months, Bitcoin added around 93% to its value, while Coinbase surged more than 110%, according to TradingView data.
Coinbase (COIN) five-day price chart. Source: TradingView
In line with Bitcoin’s plunge, Coinbase shares tumbled 20.7% on Aug. 5, dropping to as low as $173 per stock. Following a subsequent recovery, the Coinbase stock closed at $189.5 on Monday, down around 7%, TradingView data showed.
This is a developing story, and further information will be added as it becomes available.
On Aug. 5, ARK purchased 28,632 Coinbase shares, resuming buying after a long period of dumping the stock in 2024.
The purchase cost $5.4 million, with COIN closing at $189.5 on Aug. 6, according to data from TradingView.
ARK bags Coinbase shares as Bitcoin tumbles 20%
ARK’s return to buying Coinbase came amid a significant decline in cryptocurrency markets, triggered by massive volatility across traditional equity markets.
On Aug. 5, Bitcoin plummeted below $50,000 for the first time since February 2024, briefly dropping to as low as $49,800, according to data from CoinGecko. The price drop erased much of Bitcoin’s gains over the past few months, as BTC tumbled more than 20% from around $63,000 on Aug. 1 before recovering at around $55,000.
Bitcoin (BTC) seven-day price chart. Source: CoinGecko
At the time of writing, Bitcoin is trading at $55,661, up around 6% over the past 24 hours, but still down 16% over the past seven days, according to CoinGecko.
As previously mentioned, the Coinbase stock the Bitcoin price, with COIN reflecting the state of the cryptocurrency market. Over the past 12 months, Bitcoin added around 93% to its value, while Coinbase surged more than 110%, according to TradingView data.
Coinbase (COIN) five-day price chart. Source: TradingView
In line with Bitcoin’s plunge, Coinbase shares tumbled 20.7% on Aug. 5, dropping to as low as $173 per stock. Following a subsequent recovery, the Coinbase stock closed at $189.5 on Monday, down around 7%, TradingView data showed.
This is a developing story, and further information will be added as it becomes available.
Martin Shkreli-led Trump memecoin DJT plummets 95%
As the broader crypto markets experienced a downturn, a Solana-based memecoin token using the former United States president Donald Trump’s name and image experienced a price meltdown.
On Aug. 6, TrumpCoin (DJT) dropped from $0.00555 per token to $0.000229 before briefly recovering. This represents a 95% decrease in the token’s price. At the moment, the price hovers at $0.000430 per token.
TrumpCoin price falls by 95% on Aug. 6. Source: Birdeye
Data from token price tracker Birdeye also showed that amid its price drop, its volume soared by 35,501%, with 1,736% more traders in the last 24 hours. According to Birdeye, its total value locked (TVL) also hovers at $23.1 million.
Broader market downturn
The token’s price drop comes a day after the broader crypto market witnessed the largest three-day sell-off in a year. On Aug. 5, the market shed at least $500 billion from the total market capitalization as prices of Bitcoin (BTC) and Ether (ETH) plummeted by 10% and 18%, respectively.
The sell-off came as equities also stagnated, with the S&P 500 falling 4.4% simultaneously. The market also seemed to be affected by weak employment data along with lower-than-expected results from leading tech firms.
Related: Trader makes $800K one hour after buying Solana memecoin for $8.5K
TrumpCoin not related to Donald Trump
On June 19, “Pharma Bro” Martin Shkreli, who spent more than six years in prison for securities fraud, claimed that he was involved in creating the memecoin, fueling the rumor that the token was an official project of the former president.
Shkreli also claimed that Trump is truly behind the memecoin project. In June, Shkreli claimed that Barron Trump, the former president’s 18-year-old son, launched the memecoin with his father’s approval. The former hedge fund manager also alleged that the influencer “Ansem” was also involved.
Speculation surrounding whether Trump was involved in the token resulted in millions in bets. According to the crypto betting site Polymarket, over $6.3 million in bets were made on whether the token was “real” or not.
While Trump didn’t issue an official statement denying his involvement with the token, one of Trump’s close aids, Roger Stone, denied any involvement of the former president or his son with the memecoin token.
Magazine: Caitlyn Jenner memecoin ‘mastermind’s’ celebrity price list leaked
On Aug. 6, TrumpCoin (DJT) dropped from $0.00555 per token to $0.000229 before briefly recovering. This represents a 95% decrease in the token’s price. At the moment, the price hovers at $0.000430 per token.
TrumpCoin price falls by 95% on Aug. 6. Source: Birdeye
Data from token price tracker Birdeye also showed that amid its price drop, its volume soared by 35,501%, with 1,736% more traders in the last 24 hours. According to Birdeye, its total value locked (TVL) also hovers at $23.1 million.
Broader market downturn
The token’s price drop comes a day after the broader crypto market witnessed the largest three-day sell-off in a year. On Aug. 5, the market shed at least $500 billion from the total market capitalization as prices of Bitcoin (BTC) and Ether (ETH) plummeted by 10% and 18%, respectively.
The sell-off came as equities also stagnated, with the S&P 500 falling 4.4% simultaneously. The market also seemed to be affected by weak employment data along with lower-than-expected results from leading tech firms.
Related: Trader makes $800K one hour after buying Solana memecoin for $8.5K
TrumpCoin not related to Donald Trump
On June 19, “Pharma Bro” Martin Shkreli, who spent more than six years in prison for securities fraud, claimed that he was involved in creating the memecoin, fueling the rumor that the token was an official project of the former president.
Shkreli also claimed that Trump is truly behind the memecoin project. In June, Shkreli claimed that Barron Trump, the former president’s 18-year-old son, launched the memecoin with his father’s approval. The former hedge fund manager also alleged that the influencer “Ansem” was also involved.
Speculation surrounding whether Trump was involved in the token resulted in millions in bets. According to the crypto betting site Polymarket, over $6.3 million in bets were made on whether the token was “real” or not.
While Trump didn’t issue an official statement denying his involvement with the token, one of Trump’s close aids, Roger Stone, denied any involvement of the former president or his son with the memecoin token.
Magazine: Caitlyn Jenner memecoin ‘mastermind’s’ celebrity price list leaked