Author

Tatjana

With years of expertise in blockchain technology, Tatjana dives deep into the world of digital currencies, smart contracts and crypto tokens, offering clear and concise explanations for seasoned pros and curious newcomers alike. Her insights will equip you with the knowledge to confidently navigate the ever-evolving crypto landscape.

Bitcoin

El Salvador Trains 80,000 Officials on Bitcoin: A Major Step in Cryptocurrency Adoption

by Tatjana August 22, 2024

written by Tatjana 6 minutes read

El Salvador is making significant strides in the world of cryptocurrency. The government has announced a new plan to train 80,000 civil servants in Bitcoin. This initiative is part of a larger effort to integrate Bitcoin into the country’s economic and governmental systems. By providing this training, El Salvador hopes to enhance governance and promote Bitcoin adoption across the nation.

The Goal of the Bitcoin Training Program

The National Bitcoin Office (ONBTC) is leading this major initiative. The program aims to educate civil servants about Bitcoin and its potential benefits. The training will help government officials understand how to use Bitcoin as legal tender, make informed decisions about cryptocurrency, and contribute to the country’s economic growth. This move is part of El Salvador’s broader strategy to become a global hub for digital currency innovation.

The training program, called “Certification in Public Administration 1,” is designed to be comprehensive. It includes a 160-hour online course divided into seven modules. These modules cover important topics such as the legal aspects of Bitcoin, strategic management, and public policies related to cryptocurrency use. By the end of the course, civil servants will be well-equipped to handle Bitcoin-related tasks in their roles.

The Higher School of Innovation in Public Administration (ESIAP), which was established by President Nayib Bukele in 2021, will conduct the training. The goal is to improve the quality of governance in El Salvador by making sure that public officials are knowledgeable about Bitcoin and its applications. This is a key part of the country’s plan to solidify its position as a leader in cryptocurrency adoption.

Stacy Herbert’s Optimism for the Program

Stacy Herbert, the director of the National Bitcoin Office, is optimistic about the program’s long-term benefits. She believes that educating civil servants about Bitcoin will have a positive impact on the national economy. According to Herbert, these education projects are long-term investments in El Salvador’s future success, especially in terms of its Bitcoin policies.

The program is not just about teaching civil servants how to use Bitcoin; it’s about building a workforce that can support the country’s digital transformation. By educating government employees, El Salvador is ensuring that its public sector is prepared for the challenges and opportunities that come with widespread cryptocurrency adoption.

Argentina Looks to El Salvador for Guidance

El Salvador’s pioneering efforts with Bitcoin have caught the attention of other countries, particularly Argentina. Facing economic struggles of its own, Argentina is looking to El Salvador for guidance on how to integrate cryptocurrency into its financial system. This collaboration could help Argentina address some of its economic challenges, such as hyperinflation and currency instability.

In May 2024, Argentina’s National Securities Commission (CNV) began talks with El Salvador’s National Commission of Digital Assets (CNAD). The goal of these discussions was to explore potential collaborations in cryptocurrency regulation and adoption. Roberto Silva, the president of Argentina’s CNV, emphasized the importance of building strong relationships with El Salvador. He believes that Argentina can learn a lot from El Salvador’s experience with Bitcoin, especially as it considers using cryptocurrency to stabilize its economy.

This growing interest from Argentina highlights the impact that El Salvador’s Bitcoin strategy is having on the global stage. As more countries look to El Salvador for guidance, it reinforces the nation’s position as a leader in cryptocurrency adoption.

IMF and El Salvador Make Progress on Bitcoin Program

While El Salvador continues to push forward with its Bitcoin plans, it has also been in discussions with the International Monetary Fund (IMF) about a new financial program. The IMF has expressed concerns about El Salvador’s adoption of Bitcoin, particularly regarding financial stability and public finances. However, recent talks have shown progress, with both parties working towards a program that balances innovation with economic stability.

The new program aims to strengthen El Salvador’s public finances, improve transparency, and address potential risks associated with Bitcoin adoption. One of the main goals is to increase El Salvador’s primary balance by 3.5% of GDP over the next three years. This will be achieved through strategies like optimizing public sector salaries and improving fiscal management.

Despite its initial criticism of El Salvador’s decision to make Bitcoin legal tender, the IMF now seems more open to the country’s cryptocurrency strategy. This shift in tone suggests that El Salvador’s efforts to promote Bitcoin are starting to gain acceptance on the international stage.

The Future of Bitcoin in El Salvador

El Salvador is taking a bold step forward in its quest to become a Bitcoin-friendly nation. The launch of a nationwide training program for 80,000 government employees is a significant move towards integrating cryptocurrency into the country’s public sector. By educating civil servants about Bitcoin, El Salvador is not only enhancing its governance but also positioning itself as a global leader in cryptocurrency adoption.

The collaboration with Argentina and the progress in discussions with the IMF further highlight the impact of El Salvador’s Bitcoin strategy. As the country continues to lead the way in digital currency innovation, its success will serve as a model for other nations considering the benefits of Bitcoin.

In the coming years, we can expect to see more countries following in El Salvador’s footsteps. The global interest in cryptocurrency is growing, and El Salvador is at the forefront of this movement. With a well-trained workforce, strong leadership, and international collaboration, the future of Bitcoin in El Salvador looks promising.

Ethereum

BlackRock’s Ethereum ETF Surpasses $1 Billion in Net Inflows, Marking Major Milestone

by Tatjana August 21, 2024

written by Tatjana 4 minutes read

BlackRock’s Ethereum ETF

BlackRock’s iShares Ethereum Trust (ETHA) has made headlines as the first U.S. spot Ethereum ETF to surpass $1 billion in net inflows. This milestone highlights increasing investor interest in Ethereum-based funds. While the ETHA fund’s capital growth is strong, it still trails behind the impressive achievements of BlackRock’s Bitcoin ETF. The ETHA fund reached this significant milestone after taking in $26.8 million on August 20, according to data from Farside Investors.

Growing Interest in Ethereum-Based Funds

Investor demand for Ethereum-based funds like ETHA is steadily growing, but it hasn’t reached the explosive levels seen with Bitcoin ETFs. Despite the slower pace, ETHA’s performance shows that Ethereum is becoming more popular among institutional investors. Ethereum ETFs are gaining traction as more investors seek exposure to this leading cryptocurrency. This growth in interest indicates that Ethereum is no longer just a secondary option behind Bitcoin but is carving out its own space in the market.

Performance Compared to BlackRock’s Bitcoin ETF

While ETHA has crossed the $1 billion mark, it did so at a slower pace compared to BlackRock’s iShares Bitcoin Trust (IBIT). BlackRock’s Bitcoin ETF hit the $1 billion milestone in just four days, showing the strong demand for Bitcoin-focused funds. In contrast, ETHA took longer to reach the same level, but its steady growth still highlights the increasing appeal of Ethereum. The comparison between ETHA and IBIT underscores the different levels of investor interest in Bitcoin and Ethereum, with Bitcoin still holding a dominant position.

Competition in the Ethereum ETF Market

The competition in the Ethereum ETF market is heating up. Aside from BlackRock’s ETHA, other funds like Bitwise’s Ethereum fund (ETHW) are also seeing gains. However, many competitors, including Grayscale’s ETHE, have reported zero flows recently. Grayscale’s ETHE fund has struggled with outflows since it was converted into an ETF, with investors pulling approximately $2.5 billion from the fund. This decline in ETHE’s performance highlights the challenges some Ethereum ETFs face in attracting and retaining investors.

Grayscale’s Struggles and BlackRock’s Dominance

Grayscale’s ETHE has seen consistent negative flows since its debut. The outflows were most severe during its first week, with withdrawals peaking at $484 million on the fund’s first trading day. However, the pace of outflows has slowed recently, with the lowest outflows recorded at $16.9 million last Wednesday. Despite these challenges, Grayscale remains a significant player in the crypto ETF market, though its position is being increasingly overshadowed by BlackRock.

BlackRock’s dominance in the digital asset space is becoming more apparent. For the first time, BlackRock’s Ethereum and Bitcoin ETFs have surpassed Grayscale in assets under management (AUM). BlackRock has now taken over Grayscale as the largest digital asset fund manager, holding over $22 billion in crypto, while Grayscale nears $21 billion. This shift in the market reflects BlackRock’s growing influence and its ability to attract more investors to its crypto funds.

The Future of Ethereum ETFs

As Ethereum-based ETFs like ETHA continue to gain traction, the future of Ethereum in the investment world looks promising. The increasing inflows into ETHA suggest that more institutional investors are recognizing the potential of Ethereum. With Ethereum’s versatility and widespread use in decentralized finance (DeFi) and smart contracts, it’s no surprise that interest in Ethereum ETFs is growing.

However, Ethereum still faces competition from Bitcoin, which remains the dominant cryptocurrency in terms of market capitalization and investor interest. While ETHA’s growth is encouraging, it has a long way to go before matching the performance of Bitcoin-focused funds like IBIT. Nevertheless, the growing interest in Ethereum-based funds indicates that Ethereum is becoming a more significant player in the crypto market.

BlackRock’s iShares Ethereum Trust (ETHA) reaching $1 billion in net inflows marks a significant milestone in the Ethereum ETF market. While ETHA’s capital growth has been slower than BlackRock’s Bitcoin ETF, the increasing demand for Ethereum-based funds like ETHA highlights the growing interest in Ethereum among investors. As BlackRock continues to dominate the digital asset space, surpassing Grayscale in assets under management, the future of Ethereum ETFs looks bright. With Ethereum’s increasing use in DeFi and smart contracts, institutional interest in Ethereum-based funds is likely to continue growing. The competition between Ethereum and Bitcoin ETFs will remain fierce, but Ethereum is proving that it has a place alongside Bitcoin in the investment world.

Stablecoins

Tether Expands USDT on Aptos Blockchain: Ultra-Low Fees and Enhanced Accessibility

by Tatjana August 19, 2024

written by Tatjana 6 minutes read

Tether Expands USDT to Aptos Blockchain

Tether, the company behind the popular stablecoin USDT, has announced that it has launched USDT on the Aptos blockchain. This move is aimed at reducing transaction costs for users and making digital currency more accessible. With this expansion, Tether is taking advantage of the Aptos blockchain’s scalability and speed to offer users ultra-low transaction fees, making it more cost-effective to use USDT in various scenarios.

Why Tether Chose Aptos Blockchain

Tether’s decision to expand USDT to the Aptos blockchain is based on the network’s ability to provide low transaction costs and high-speed processing. Aptos has become known for its scalability, meaning it can handle a large number of transactions quickly and efficiently. This makes it a great choice for Tether as it seeks to improve the usability of its digital currency.

By integrating USDT on Aptos, Tether aims to lower the gas fees that users typically pay when sending digital currencies. Gas fees are essentially transaction fees paid to blockchain networks to process and confirm transactions. On many blockchains, these fees can be quite high, making it expensive for users to send small amounts of money, also known as microtransactions. However, on the Aptos blockchain, these fees are incredibly low—sometimes costing just a fraction of a penny. This makes it possible for Tether to support a wide range of use cases, from small payments to large-scale business operations.

The Benefits of Lower Fees for Users

One of the main benefits of launching USDT on the Aptos blockchain is the lower transaction fees. Lower fees make it easier for people to use USDT for everyday transactions, like buying goods and services or sending money to family and friends. This is especially important in regions where access to traditional banking services is limited, and people rely on digital currencies for their financial needs.

With lower fees, Tether also hopes to make USDT more attractive to businesses. Companies that need to process a large number of transactions, such as e-commerce platforms or financial services providers, can benefit from the cost savings offered by the Aptos blockchain. This could encourage more businesses to start using USDT for payments, further increasing its adoption.

Aptos Blockchain Growth

Aptos has seen significant growth in recent months, making it a key player in the blockchain space. According to a press release, the number of daily active users (DAU) on the Aptos network has increased from 96,000 in January to 170,000 in July. This growth has been driven by the network’s ability to handle a high volume of transactions efficiently.

In May 2024, Aptos set a new record by processing 157 million transactions in a single day. This shows just how scalable and reliable the network is, making it an ideal choice for Tether’s USDT. By expanding to Aptos, Tether is positioning itself to take advantage of this growth and reach more users.

Tether’s Vision for Digital Currency

Tether’s expansion to the Aptos blockchain is part of a larger vision to make digital currencies more accessible and functional for people around the world. Paolo Ardoino, the CEO of Tether, has emphasized that the company is committed to improving the usability of digital currencies by offering faster and cheaper transactions. By partnering with Aptos, Tether is working to make this vision a reality.

Tether believes that by reducing transaction fees, more people will be able to use USDT in their daily lives. This could help increase the adoption of digital currencies, especially in regions where traditional financial services are not readily available. Tether’s goal is to create a world where digital currencies are as easy to use as cash, and expanding USDT to the Aptos blockchain is a big step in that direction.

Nansen Partners with Aptos

In addition to Tether’s integration with Aptos, the blockchain has also partnered with Nansen, a leading blockchain analytics provider. Nansen’s partnership with Aptos is aimed at bringing advanced onchain analytics and data to the Aptos ecosystem. This will help users and investors better understand the trends and activities within the Aptos blockchain.

Nansen’s tools will allow crypto teams to delve deeper into the Aptos ecosystem and make more informed decisions. This partnership is expected to further boost the growth of Aptos by providing valuable insights to users and businesses. As Aptos continues to grow, the integration of Nansen’s analytics will play a key role in helping the network reach its full potential.

Tether vs. Celsius Lawsuit

While Tether is making moves to expand its reach and improve the usability of USDT, it is also dealing with legal challenges. On August 10, 2024, the defunct cryptocurrency exchange Celsius filed a lawsuit against Tether. The lawsuit claims that Tether misappropriated assets and is seeking $3.5 billion in Bitcoin returns, damages, and legal fees.

According to the lawsuit, Celsius had loaned Tether a specific amount of USDT during its bankruptcy proceedings. In exchange, Celsius provided Tether with 39,543.42 Bitcoin as collateral. Celsius claims that Tether sold the Bitcoin at a price that nearly covered the debt, without giving Celsius the chance to provide additional collateral. The outcome of this lawsuit could have significant implications for both Tether and the broader cryptocurrency industry.

What’s Next for Tether?

Tether’s expansion of USDT to the Aptos blockchain marks an important step in making digital currencies more accessible and cost-effective. With ultra-low transaction fees and the scalability of the Aptos network, Tether aims to improve the usability of USDT for both individuals and businesses. As the Aptos blockchain continues to grow and gain traction, Tether’s integration could play a key role in driving further adoption of digital currencies.

At the same time, Tether faces challenges, such as the ongoing lawsuit with Celsius. However, its focus on innovation and partnerships, like the one with Aptos, shows that Tether is committed to staying at the forefront of the digital currency space. With its sights set on making digital currencies more accessible and functional, Tether’s expansion to the Aptos blockchain is just the beginning of its efforts to revolutionize the financial landscape.

Bitcoin

Spot Bitcoin ETF Inflows Soar 225% Amid Crypto Market Correction

by Tatjana August 19, 2024

written by Tatjana 6 minutes read

Spot Bitcoin ETF Inflows Surge as Crypto Market Corrects

In recent days, the cryptocurrency market has experienced significant shifts. One of the most notable changes is the jump in spot Bitcoin ETF inflows. On August 16, spot Bitcoin ETFs recorded $36.01 million in inflows, a remarkable 223% increase from the previous day, when the total inflows were just $11.11 million.

This surge in inflows comes as the crypto market undergoes a correction, with many investors turning their attention to spot Bitcoin ETFs. Let’s take a closer look at how the different ETFs performed and what this means for the broader cryptocurrency market.

Fidelity Bitcoin Fund Leads the Way

For the second day in a row, Fidelity’s spot Bitcoin ETF, known as the Fidelity Bitcoin Fund, led the pack with $61.3 million in inflows. This shows strong investor confidence in Fidelity’s offering, as it continues to attract significant capital.

Right behind Fidelity, BlackRock’s IBIT recorded $20.4 million in inflows. Although BlackRock had seen no activity the previous day, this renewed interest highlights the strong position of their Bitcoin ETF in the market.

Other Notable Inflows

Several other spot Bitcoin ETFs also saw impressive inflows on August 16. ARK 21Shares’s ARKB ETF recorded $13.4 million in inflows, continuing its steady performance. Bitwise’s BITB ETF wasn’t far behind, with $12 million flowing into its fund.

While these inflows are encouraging for the spot Bitcoin ETF market, not all ETFs experienced positive results. Franklin Templeton’s EZBC ETF saw a more modest inflow of $1.7 million, which, while positive, pales in comparison to the larger inflows into the other funds.

Grayscale GBTC Faces Significant Outflows

Despite the positive news for many spot Bitcoin ETFs, Grayscale’s GBTC ETF faced a different reality. On August 16, Grayscale GBTC experienced a substantial outflow of $72.9 million. This outflow adds to the already significant total outflows of $19.64 billion that the fund has seen since its inception.

Grayscale’s GBTC has been struggling recently, with many investors choosing to move their capital to other ETFs or different investments. However, it’s important to note that Grayscale’s Bitcoin Mini Trust ETF remained stable. The Mini Trust ETF had no net outflows, maintaining its total net inflow since launch at $288 million. This stability contrasts with the challenges faced by Grayscale’s main GBTC product.

Neutral Performance Among Other Bitcoin ETFs

While the market saw significant inflows and outflows among the leading Bitcoin ETFs, some funds remained neutral on August 16. Four other Bitcoin ETFs reported no net inflows or outflows, indicating that investors are holding their positions as the broader cryptocurrency market corrects.

This neutral stance could signal that some investors are waiting to see how the market evolves before making further moves. With the cumulative spot BTC ETF inflows now surpassing the $17.3 billion mark, it’s clear that there is still strong interest in Bitcoin ETFs, even as the market faces volatility.

Crypto Market Overview

The cryptocurrency market as a whole has also been affected by recent trends. According to data from CoinGecko, the global crypto market capitalization declined by 0.3% over the past 24 hours, standing at $2.17 trillion at the time of writing.

This decline in market cap comes as the total 24-hour trading volume dropped by 24%, now hovering around $67.3 billion. Despite the market correction, Bitcoin saw a 2% increase over the past 24 hours, trading at $59,228 at the time of writing.

Ethereum ETFs Experience Outflows

While Bitcoin ETFs saw inflows, the same cannot be said for Ethereum ETFs. On August 16, Ethereum ETFs collectively saw $15 million in outflows, marking the second consecutive day of outflows for these funds.

Grayscale’s ETHE ETF led the outflows with $27.7 million, contributing to a total outflow of $2.41 billion since its inception. This ongoing trend has raised concerns among investors, as the outflows continue to mount.

VanEck’s Ethereum ETF also faced challenges, recording a $4.8 million withdrawal on the same day. In contrast, Fidelity’s FETH ETF and BlackRock’s ETHA ETF bucked the trend, with inflows of $10.3 million and $7.2 million, respectively. Despite these positive inflows, the overall picture for Ethereum ETFs remains negative.

Ether ETF Trading Volume Drops

Another concerning trend for Ethereum ETFs is the drop in trading volume. On August 16, trading volume for Ether ETFs fell to $185 million, a significant decrease compared to the previous day.

This decline in trading volume suggests that investors are becoming more cautious with their Ethereum holdings. The cumulative net outflow for Ether ETFs has now reached $420.11 million, indicating that many investors are moving away from these funds amid the current market conditions.

The Road Ahead for Bitcoin and Ethereum ETFs

As the cryptocurrency market continues to correct, the performance of Bitcoin and Ethereum ETFs will be closely watched by investors. Spot Bitcoin ETFs have shown resilience, with significant inflows helping to offset outflows from other funds like Grayscale’s GBTC. On the other hand, Ethereum ETFs are facing headwinds, with ongoing outflows and declining trading volumes.

The next few days and weeks will be crucial in determining whether the positive momentum in Bitcoin ETFs can be sustained or if the broader market correction will weigh down on these funds as well. Investors will need to stay informed and be prepared to adjust their strategies as the market evolves.

In summary, the recent jump in spot Bitcoin ETF inflows, led by Fidelity and BlackRock, reflects strong investor interest even as the cryptocurrency market corrects. However, the challenges faced by Ethereum ETFs and the overall market volatility suggest that caution is still warranted.

Ethereum

Donald Trump’s $1M+ Ether Holdings and NFT Earnings Revealed in New Financial Disclosures

by Tatjana August 16, 2024

written by Tatjana 8 minutes read

Donald Trump’s Cryptocurrency and NFT Earnings: What You Need to Know

Donald Trump’s Ether Holdings

Recent filings have revealed that former U.S. President Donald Trump holds a significant amount of Ether (ETH), one of the most popular cryptocurrencies. According to his financial disclosures, Trump’s Ether holdings range between $1 million and $5 million. This makes him one of the more prominent figures with substantial crypto investments. Despite these substantial holdings, Trump has not been very vocal about cryptocurrency recently, even though he previously endorsed it.

These financial disclosures come from the Federal Election Commission, providing a closer look at Trump’s extensive finances. The filings also suggest that Trump’s wallet, tracked by Arkham Intelligence, might hold around $3.6 million in Ether. This indicates that Trump’s involvement in the crypto world is more substantial than many might have initially thought.

Trump’s NFT Licensing Fees

Beyond his cryptocurrency holdings, Donald Trump has also earned a considerable income from non-fungible tokens (NFTs). NFTs are digital assets that represent ownership of unique items or content, and they have gained massive popularity in recent years. According to the disclosures, Trump earned over $7 million from a licensing agreement with a company called NFT INT LLC. This company is responsible for selling Trump Digital Trading Cards, which feature various images of the former president.

The trading cards have been a significant success, generating substantial trading volume on platforms like OpenSea. Since their launch, the Trump Digital Trading Cards have seen over 15,808 ETH in trading volume, further highlighting the popularity of Trump’s NFT ventures. In addition to this, Melania Trump, the former First Lady, also earned $330,609 from NFT sales, showing that the entire Trump family is involved in this emerging market.

Trump’s Future NFT Plans

In addition to his current NFT earnings, Donald Trump has announced plans to launch another NFT collection soon. This move could further boost his income from digital assets and solidify his presence in the NFT market. As NFTs continue to grow in popularity, it’s likely that Trump will continue to capitalize on this trend.

Trump’s previous endorsement of crypto and NFTs has created a buzz in the crypto community. However, it’s interesting to note that he didn’t mention his crypto holdings or NFT plans during a recent X (formerly Twitter) Space interview with Elon Musk. Despite discussing various campaign-related topics, Trump chose not to bring up his involvement in the crypto world, which has led to speculation about his future plans.

Trump Organization’s Cryptocurrency Initiative

The Trump Organization, the company responsible for managing Donald Trump’s business ventures, has also announced plans to unveil a new cryptocurrency initiative. This news was shared by Eric Trump, Donald Trump’s son, who now leads the Trump Organization. Eric has been vocal about his interest in cryptocurrencies and decentralized finance (DeFi).

In a recent post on X, Eric Trump expressed his enthusiasm for crypto, stating that he had “fallen in love” with the technology. He believes that cryptocurrencies and DeFi have the potential to revolutionize the world of banking and finance. According to Eric, the Trump Organization’s upcoming cryptocurrency initiative could play a significant role in this transformation.

This announcement has sparked excitement and speculation within the crypto community. Many are eager to see what the Trump Organization has planned and how it will impact the broader cryptocurrency market. With Eric Trump leading the charge, it’s clear that the Trump family sees immense potential in this emerging technology.

Trump’s Financial Disclosures and Business Interests

The recent financial disclosures not only shed light on Donald Trump’s cryptocurrency and NFT earnings but also provide a glimpse into his broader business interests. The documents, which span over 250 pages, reveal the extent of Trump’s wealth and investments. From real estate holdings to trademarks in countries like China, Saudi Arabia, Iran, Ukraine, and Israel, Trump’s financial empire is vast.

One interesting aspect of the disclosures is Trump’s investment in gold bars, which is valued at six figures. This suggests that, in addition to his cryptocurrency holdings, Trump is also investing in more traditional forms of wealth preservation. The disclosures highlight Trump’s diverse investment portfolio, which includes both modern and traditional assets.

In addition to his real estate and crypto investments, Trump reported earning more than $12 million through licensing and royalty deals from two LLCs he owns. One of these deals is with NFT INT LLC, the company responsible for selling his NFT trading cards. The $7.2 million he earned from this agreement is a significant increase from the $300,000 he reported in the previous year’s disclosure.

Trump’s other major income source comes from CIC Ventures LLC, through which he earned more than $5 million in royalties from his books, including “Letters to Trump” and “Our Journey Together.” This shows that despite stepping away from politics, Trump continues to generate significant income from his various business ventures.

The Trump Family’s Growing Interest in Cryptocurrency

It’s not just Donald Trump who is showing an interest in cryptocurrency. As mentioned earlier, Eric Trump has also been vocal about his enthusiasm for the technology. He believes that cryptocurrencies and decentralized finance could be game-changers for the U.S. economy, and he is eager to integrate them into the Trump Organization’s business strategy.

Eric’s recent comments on X have fueled speculation about the Trump family’s future in the crypto world. He hinted at a major announcement in the coming weeks, which could further solidify the Trump Organization’s position in the cryptocurrency market. This growing interest in crypto from both Donald and Eric Trump suggests that the Trump family sees a bright future in this space.

Melania Trump’s involvement in NFTs also highlights the family’s collective interest in digital assets. Her $330,609 income from NFT sales indicates that she, too, is capitalizing on the growing popularity of these unique digital items.

Trump’s Cryptocurrency and NFT Strategy

While Donald Trump has been relatively quiet about his cryptocurrency and NFT holdings in recent public appearances, his financial disclosures paint a clear picture of his strategy. Trump is not just dipping his toes into the crypto world; he is making substantial investments and earning significant income from these ventures.

By holding between $1 million and $5 million in Ether, Trump is positioning himself as a major player in the cryptocurrency market. His NFT licensing deals have also proven to be lucrative, with millions of dollars in income generated from these agreements.

Trump’s strategy appears to be a mix of both investment and entrepreneurship. On the one hand, he is holding a significant amount of cryptocurrency, which could appreciate in value over time. On the other hand, he is actively earning income through NFT licensing agreements and other business ventures.

This dual approach allows Trump to benefit from the growing popularity of cryptocurrencies and NFTs while also maintaining a diversified investment portfolio. His financial disclosures suggest that Trump is serious about his involvement in the crypto world, even if he isn’t discussing it publicly.

Donald Trump’s recent financial disclosures offer a fascinating glimpse into his involvement in the world of cryptocurrency and NFTs. With millions of dollars in Ether holdings and significant income from NFT licensing deals, Trump is positioning himself as a major player in this emerging market.

The Trump Organization’s upcoming cryptocurrency initiative, led by Eric Trump, further underscores the family’s growing interest in this space. As the world of cryptocurrency and decentralized finance continues to evolve, it will be interesting to see how the Trump family navigates these new opportunities.

While Trump may not be openly discussing his crypto and NFT ventures in public forums, his financial disclosures speak volumes. It’s clear that he sees the potential in these digital assets and is actively investing in them. As Trump continues to expand his presence in the crypto world, his influence on the market will likely grow, making him a key figure to watch in the coming years.

Bitcoin

Bitcoin and Ethereum Prices Plummet as Liquidations Surge Amid Market Volatility

by Tatjana August 15, 2024

written by Tatjana 7 minutes read

Bitcoin and Ethereum Prices Drop

The prices of top cryptocurrencies like Bitcoin and Ethereum took a sudden hit on Thursday afternoon. This drop led to a wave of liquidations, mostly from long positions, as the crypto market turned red. Despite gains in the stock market, Bitcoin and Ethereum, along with other popular cryptocurrencies like Solana and Dogecoin, experienced sharp declines.

Bitcoin and Ethereum Prices Plunge

Bitcoin saw a significant drop of nearly 3% in just over an hour, falling to around $57,787. Ethereum’s price fell even more, dipping to $2,547 according to data from CoinGecko. The downward trend wasn’t limited to just these two giants. Other cryptocurrencies like Solana and Dogecoin suffered even bigger losses during the same period.

Liquidations and Market Volatility

In the past 24 hours, liquidations have topped $176 million, largely due to the market’s sudden volatility. Ethereum led the way with over $59 million worth of positions liquidated, followed by Bitcoin, which saw about $50 million in liquidations. The rapid price drops have left many investors scrambling as their long positions are being liquidated.

The Impact of the CPI Report

Earlier on Thursday, both Bitcoin and Ethereum had been volatile following the release of the latest Consumer Price Index (CPI) report. The CPI data, which measures the average change in prices over time, did not seem to have a direct impact on this latest crypto dip. Interestingly, the stock market saw gains on the same day, showing a disconnect between traditional financial markets and the cryptocurrency market.

Stock Market vs. Crypto Market

While the stock market seemed to brush off any concerns from the CPI report, the crypto market took a hit. This divergence in performance between stocks and cryptocurrencies suggests that different factors might be at play in driving crypto prices. Some analysts believe that macroeconomic factors like inflation or interest rates may not be the only reasons behind this sudden drop in crypto prices.

Bitcoin’s Support Levels Under Pressure

The recent price drop has raised concerns about Bitcoin’s ability to maintain its current support levels. With the price hovering around $57,787, there is fear that it could break through the $56,000 support level, leading to even more sell-offs. Bitcoin’s price could experience further downside volatility unless it recovers above $60,000 soon.

Upcoming Bitcoin Options Expiry

Another factor adding to the market’s uncertainty is the upcoming Bitcoin options expiry. Over $1.4 billion worth of Bitcoin options are set to expire on Aug. 16, according to Deribit. This large amount of expiring options is putting extra pressure on Bitcoin’s price. If Bitcoin fails to recover above $60,000 before the options expire, it could introduce more volatility and potentially push prices lower.

The Role of Bitcoin ETFs

Bitcoin exchange-traded funds (ETFs) are another important factor to watch. ETF inflows were positive for two consecutive days, but they turned negative again on Aug. 14, with net outflows exceeding $81 million, according to Farside Investors. However, the recent favorable CPI data could boost investor confidence, leading to more inflows into Bitcoin ETFs.

How CPI Data Could Affect Crypto Prices

The U.S. Bureau of Labor Statistics reported a Consumer Price Index (CPI) reading showing an annualized price increase of 2.9%, the slowest rate of increase since 2021. This positive CPI report could potentially lead to more inflows into Bitcoin ETFs as investors look to take advantage of a potential broader market rally. If Bitcoin ETFs continue to see increased investment, this could help stabilize Bitcoin’s price and possibly lead to a recovery.

Will Bitcoin Drop Below $56,000?

With Bitcoin’s price currently flirting with the $57,000 level, many are wondering if it could dip below $56,000. The $56,000 mark acts as a key demand zone for Bitcoin, meaning that if the price drops below this level, it could lead to a significant sell-off. Investors are closely watching this level as a break below it could signal more downside for Bitcoin.

Solana and Dogecoin Face Bigger Losses

While Bitcoin and Ethereum are grabbing most of the headlines, other cryptocurrencies like Solana and Dogecoin have seen even steeper declines. These coins are often more volatile than Bitcoin and Ethereum, making them more susceptible to large price swings during periods of market turbulence.

Liquidations Continue to Wreak Havoc

As the market remains volatile, liquidations are continuing to cause problems for investors. Long positions are being liquidated as prices fall, leading to further downward pressure on the market. The $176 million in liquidations over the past 24 hours is a clear sign of how quickly things can change in the crypto market.

How Investors Are Responding

In response to the recent volatility, many investors are adjusting their strategies. Some are choosing to exit their positions entirely, while others are doubling down, hoping to buy the dip. The uncertainty in the market has made it difficult for investors to make confident decisions, leading to a wide range of responses.

The Future of Bitcoin and Ethereum Prices

Looking ahead, the future of Bitcoin and Ethereum prices remains uncertain. Much will depend on how the market reacts to upcoming events, such as the options expiry on Aug. 16 and any further macroeconomic developments. If Bitcoin can recover above $60,000, it could signal a potential rebound. However, if prices continue to fall, we could see even more liquidations and further declines.

What Does This Mean for the Average Investor?

For the average investor, the recent market turmoil is a reminder of the risks involved in cryptocurrency trading. While the potential for high returns is always there, so is the potential for significant losses. It’s important for investors to stay informed and be prepared for sudden market movements like the one we’ve seen this week.

Could Bitcoin ETFs Help Stabilize Prices?

One potential bright spot for the market could be the role of Bitcoin ETFs. If inflows into these funds increase, it could provide some much-needed stability to Bitcoin’s price. ETFs have become an important tool for institutional investors looking to gain exposure to Bitcoin, and their influence on the market is only likely to grow in the future.

The recent drop in Bitcoin and Ethereum prices has sparked concerns among investors. With liquidations topping $176 million and market volatility showing no signs of slowing down, the future of the crypto market remains uncertain. As always, investors should stay informed and be prepared for whatever the market might throw their way. Whether it’s the impact of CPI data, the upcoming Bitcoin options expiry, or the role of ETFs, there are many factors that could influence prices in the days and weeks to come.

Bitcoin

Marathon Digital Invests $249M in Bitcoin, Boosts Reserves to 25,000 BTC

by Tatjana August 15, 2024

written by Tatjana 7 minutes read

Marathon Digital’s Big Bitcoin Purchase

Marathon Digital, a major player in Bitcoin mining, has made a significant move by purchasing $249 million worth of Bitcoin. This recent purchase adds 4,144 Bitcoin (BTC) to their reserves, increasing their total holdings to over 25,000 BTC. The company made this purchase using funds from a $300 million senior note offering. The average price they paid for each Bitcoin was around $59,500.

Marathon’s “Hodl Strategy” and Bitcoin Reserves

Marathon Digital’s CEO, Fred Thiel, has been vocal about the company’s new approach to Bitcoin. He calls it the “hodl strategy,” which is a play on the word “hold.” This term has become popular in the cryptocurrency world, representing the idea of holding onto Bitcoin for a long time, expecting its value to rise. Thiel believes that Bitcoin is a “premier strategic treasury asset,” meaning it’s valuable not just for its potential price increase but also as a store of value for the company’s long-term plans.

Senior Note Offering and Bitcoin Acquisition

The $300 million senior note offering was a crucial part of Marathon’s strategy. After fees, the company ended up with around $292.5 million. The notes, which are due in September 2031, have a 2.125% annual interest rate. These notes can be converted into cash, Marathon stock, or a combination of both. This flexible approach gives Marathon options depending on how the market performs.

With this new cash, Marathon bought the 4,144 Bitcoin and plans to use the remaining funds for other purposes. These might include more Bitcoin purchases or even strategic acquisitions that could strengthen the company’s position in the market.

Marathon’s Growing Bitcoin Reserves

This isn’t the first time Marathon has bought a significant amount of Bitcoin. Just last month, the company purchased 2,282 BTC, which was worth $124 million at the time. This steady increase in their Bitcoin holdings shows that Marathon is serious about its “hodl strategy.” By accumulating Bitcoin, the company aims to build a strong reserve that can support its operations and future growth.

Impact on Marathon’s Share Price

Despite these large Bitcoin purchases, Marathon’s stock (MARA) has been under pressure. On the day of the latest Bitcoin buy, Marathon’s shares closed down 2.26%, bringing the stock price to $15.14. Year-to-date, the company’s stock has dropped by nearly 34%, according to Google Finance. This decline is partly due to broader market trends and challenges in the cryptocurrency industry.

Challenges in the Crypto Mining Industry

Marathon Digital is not the only company facing difficulties in the crypto mining industry. Recently, mining profitability has taken a hit, especially after the Bitcoin halving. The Bitcoin halving is an event that happens roughly every four years, cutting the rewards miners receive for processing transactions in half. While this is designed to control inflation and maintain Bitcoin’s scarcity, it also makes mining less profitable.

For Marathon, this decrease in mining rewards has been challenging. The company has one of the highest all-in mining costs, meaning it spends a lot of money on electricity, equipment, and other expenses to mine Bitcoin. As mining profitability drops, companies like Marathon are feeling the financial strain.

Hashprice and Mining Profitability

One key metric in the mining industry is hashprice. This measures the amount of money a miner earns per unit of computing power (hashrate) they contribute to the Bitcoin network. Recently, hashprice fell to a record low, making it harder for miners to turn a profit. Blockbridge, a research firm, reported that many public miners, including Marathon, are struggling with this issue.

Marathon’s Strategy for the Future

Despite the challenges, Marathon Digital remains optimistic about the future. The company plans to continue acquiring Bitcoin and sees it as a crucial part of its long-term strategy. By building up its Bitcoin reserves, Marathon hopes to weather the ups and downs of the market and come out stronger in the end.

Marathon is also exploring other opportunities for growth. The company mentioned that it might use the remaining funds from the senior note offering for “general corporate purposes.” This could include strategic acquisitions that would help Marathon expand its operations or enter new markets.

Second-Quarter Earnings and Financial Performance

Marathon’s financial performance has been mixed recently. In its second-quarter earnings report, the company posted revenues of $145.1 million, which was 9% lower than Wall Street estimates. However, this still represented a 78% increase compared to the same period last year. This growth shows that Marathon is expanding, even if it’s not hitting all of its targets.

The lower-than-expected earnings were likely due to the challenges in the mining industry, including the drop in hashprice and the impact of the Bitcoin halving. Despite these hurdles, Marathon’s leadership remains confident that their “hodl strategy” and continued focus on Bitcoin acquisition will pay off in the long run.

The Future of Bitcoin Mining

As the cryptocurrency industry evolves, companies like Marathon Digital will need to adapt to survive. The recent drop in mining profitability has put pressure on all miners, not just Marathon. However, those that can manage their costs and continue to acquire Bitcoin may be in a better position for future success.

Marathon Digital’s strategy of using its Bitcoin reserves as a strategic asset shows that the company is thinking long-term. While the current market conditions are challenging, Marathon believes that holding onto Bitcoin will give it a competitive edge in the future.

Marathon Digital’s Role in the Cryptocurrency Market

Marathon Digital is one of the largest Bitcoin miners in the world, and its actions can have a significant impact on the market. By continuing to buy large amounts of Bitcoin, the company is signaling its confidence in the cryptocurrency’s future. This could inspire other companies to adopt similar strategies, further solidifying Bitcoin’s role as a valuable asset.

However, Marathon’s success will depend on several factors, including the overall performance of the cryptocurrency market, the company’s ability to manage its mining costs, and its ability to navigate the challenges of the industry.

Marathon Digital’s decision to buy $249 million worth of Bitcoin and increase its reserves to over 25,000 BTC is a bold move. Despite the challenges in the crypto mining industry, including the recent drop in profitability and the impact of the Bitcoin halving, Marathon remains committed to its “hodl strategy.” By viewing Bitcoin as a premier strategic treasury asset, Marathon is positioning itself for long-term success.

The company’s recent senior note offering provided the funds necessary for this large Bitcoin purchase, and it plans to continue acquiring more Bitcoin in the future. While the current market conditions are tough, Marathon’s leadership believes that their strategy will ultimately pay off.

As the cryptocurrency market continues to evolve, Marathon Digital will need to stay flexible and adapt to new challenges. However, with a strong Bitcoin reserve and a clear strategy in place, the company is well-positioned to navigate the ups and downs of the market and emerge as a leader in the industry.

News

Ledger Live and Revolut Join Forces to Simplify Crypto Purchases Across Europe

by Tatjana August 14, 2024

written by Tatjana 9 minutes read

Ledger Live Teams Up with Revolut to Make Crypto More Accessible

In a big move to make cryptocurrencies easier to access, Revolut has partnered with Ledger Live. This new integration will allow users in certain European countries to buy cryptocurrencies directly through the Ledger Live app. This is part of a larger effort to make crypto more accessible to everyone, especially in the European Economic Area (EEA).

What is Ledger Live and How Does it Work?

Ledger Live is a software that helps people manage their cryptocurrencies. It allows users to track their crypto portfolio, see how their assets are doing, and now, thanks to the partnership with Revolut, users can also buy cryptocurrencies directly through the app. This integration makes it much easier for people in Europe to get involved in crypto without needing to use multiple apps or go through complicated steps.

How Revolut is Making Crypto Purchases Easier

Revolut is a digital fintech app that has been making waves in the financial world. It started as an app that let people send and receive money easily, but now it’s much more than that. With this new integration with Ledger Live, Revolut is making it even easier for people to buy cryptocurrencies.

If you are an existing Revolut customer and have already completed the Know Your Customer (KYC) verification, you won’t need to go through another verification process to buy crypto. This means you can start buying crypto right away. New users can also complete the KYC process quickly using Visa or Mastercard, making the process smooth and user-friendly.

Why This Partnership Matters for Crypto Users

This partnership is a significant step forward for the crypto community. Before this integration, buying cryptocurrencies could be a bit of a hassle, especially for people new to the crypto world. You would need to use multiple platforms, complete various verification processes, and deal with complicated steps to secure your assets. But now, with Revolut and Ledger Live working together, the process is much more straightforward.

Emil Urmanshin, Revolut’s general manager of crypto, said this collaboration is the “next step in our mission to help people onboard to web3.” This means that Revolut is focused on making it easier for people to join the world of decentralized internet, known as web3, where cryptocurrencies play a big role.

Revolut’s Growing Role in the Crypto World

Revolut has been steadily expanding its presence in the crypto space. The company has a valuation of $25.7 billion as of April and offers services to 30 million customers worldwide. Revolut has been thinking about getting more involved in crypto since 2021 when it started looking for someone to lead its crypto exchange project. Now, that idea has become a reality with Revolut X.

What is Revolut X?

Revolut X is a new crypto exchange platform that Revolut has been rolling out in phases. Unlike traditional exchanges, Revolut X has been made available first to professional traders. This cautious approach helps ensure that the platform is ready and secure before it’s opened up to everyone.

Revolut X allows users to switch between fiat (regular money) and cryptocurrencies with zero fees for makers and a small fee of 0.09% for takers. This makes it an attractive option for serious traders who want to minimize their costs.

Features of Revolut X

Revolut X isn’t just about buying and selling crypto. The platform is designed to meet the needs of experienced traders by offering advanced features like real-time trading and advanced analytics. Users can access technical indicators, TradingView chart integration, and market monitoring tools, making it easier to make informed trading decisions.

Security is also a top priority for Revolut X. Most funds are stored in cold storage, which means they are kept offline to protect them from hackers. Additionally, Revolut offers 24/7 customer support to help users with any issues they might encounter.

How Ledger Live and Revolut X Work Together

The partnership between Ledger Live and Revolut makes it easier for users to manage their crypto assets. With Ledger Live, users can track their portfolios and buy cryptocurrencies through Revolut’s seamless integration. This means you can see all your assets in one place, make transactions easily, and rest assured that your funds are secure.

For professional traders using Revolut X, the integration with Ledger Live offers even more convenience. You can switch between fiat and crypto, track your trades, and store your assets securely, all within the same ecosystem.

Why European Users Benefit the Most

This integration is particularly beneficial for users in the European Economic Area (EEA). Europe has been a growing hub for cryptocurrency adoption, and with Revolut and Ledger Live working together, it’s now easier than ever for people in this region to get involved in crypto.

By allowing users to buy crypto directly through Ledger Live without needing multiple apps or verification processes, Revolut is making crypto more accessible to a wider audience. This is especially important in Europe, where regulations and security concerns can sometimes make it difficult for people to get started with crypto.

The Future of Crypto with Revolut and Ledger Live

As Revolut continues to expand its crypto services, it’s clear that the company is committed to making cryptocurrencies more accessible to everyone. The integration with Ledger Live is just one of many steps Revolut is taking to achieve this goal.

With the launch of Revolut X and its focus on professional traders, Revolut is positioning itself as a major player in the crypto world. The company’s emphasis on security, ease of use, and advanced trading features makes it a strong contender in the growing cryptocurrency market.

How to Get Started with Ledger Live and Revolut

If you’re interested in getting started with cryptocurrencies, using Ledger Live and Revolut is a great way to begin. Here’s how you can get started:

Download the Ledger Live App: First, you’ll need to download the Ledger Live app. This is available on both iOS and Android devices.
Create a Revolut Account: If you don’t already have a Revolut account, you’ll need to create one. The process is simple and only takes a few minutes.
Complete KYC Verification: If you’re a new user, you’ll need to complete the KYC verification process. This is required to ensure that you’re eligible to buy and trade cryptocurrencies.
Link Your Revolut Account to Ledger Live: Once you’ve completed the KYC process, you can link your Revolut account to the Ledger Live app. This will allow you to start buying cryptocurrencies directly through the app.
Start Buying Crypto: With your accounts linked, you can now start buying cryptocurrencies. You can choose from over 50 different tokens and track your portfolio within the Ledger Live app.

The Benefits of Using Ledger Live and Revolut Together

Using Ledger Live and Revolut together offers several benefits:

Seamless Integration: The integration between Ledger Live and Revolut means you can manage your crypto assets more easily without needing multiple apps.
Security: Both Revolut and Ledger Live prioritize security, with features like cold storage and secure transaction processes.
Ease of Use: The user-friendly interface makes it easy for both beginners and experienced traders to navigate the world of crypto.
Advanced Trading Tools: For professional traders, Revolut X offers advanced features that help you make more informed decisions.
Wide Range of Cryptocurrencies: With access to over 50 tokens, you have plenty of options to diversify your portfolio.

The partnership between Ledger Live and Revolut is a significant step forward in making cryptocurrencies more accessible to people in Europe. With the ability to buy crypto directly through Ledger Live, users can now manage their assets more easily and securely. Revolut’s continued expansion into the crypto space with the launch of Revolut X shows that the company is committed to making crypto trading easier and more secure for everyone. Whether you’re new to crypto or an experienced trader, the combination of Ledger Live and Revolut offers a comprehensive solution for managing your digital assets.

Ethereum

Ethereum Bulls Target $4,000: Key Analysis and Market Rebound Insights

by Tatjana August 12, 2024

written by Tatjana 8 minutes read

Ethereum’s (ETH) market is showing signs of recovery after a recent drop caused by fear in the cryptocurrency market. The sharp decline pushed Ethereum’s price below $2,000, but bulls have regained control, lifting the price above $2,500. Now, Ethereum bulls are aiming for a target of $4,000, despite some warnings from analysts about the challenges ahead. This article will dive into the key factors driving this potential rally, analyzing the technical setups, resistance levels, and long-term support.

Ethereum’s Recent Price Action

After falling below $2,000, Ethereum has bounced back, showing a strong recovery. Trading expert RLinda recently projected that this recovery phase, even with the recent volatility, demonstrates a resilient bullish outlook for Ethereum. This optimistic view is supported by promising technical setups on both the weekly and monthly charts, which suggest that Ethereum could be gearing up for a major rebound.

Daily Chart Patterns: Key Resistance Levels

On the daily chart, Ethereum is currently facing a critical resistance zone between $2,717 and $2,817. This area has been tested several times, and each rejection has been met with strong buying pressure around the $2,500 level. This buying pressure suggests that bulls remain in control of the market. However, the price has struggled to break through these key resistance levels, and the chart still looks somewhat bearish, with a pattern of lower highs.

For Ethereum to maintain its bullish momentum, it is crucial for the price to stay above $2,500. If Ethereum can break through the $2,717 to $2,817 resistance zone, the next major hurdle would be around $3,500, potentially paving the way toward the $4,000 mark.

Change of Character (CHOCH) Pattern

In addition to the resistance levels, the daily chart also reveals a “Change of Character” (CHOCH) pattern. This pattern indicates a possible shift from a bearish to a bullish market structure. If this pattern holds, it could further support a significant upward move for Ethereum, making the $4,000 target more achievable.

Long-Term Support and Potential Upside

Looking at the weekly chart, Ethereum is trading around the 50-week moving average, a historically strong support level. The 200-week moving average, which is around $2,156, also serves as critical long-term support. The recent bounce from this area suggests that Ethereum could be on the verge of re-entering a global sideways range, which has defined its trading behavior for much of the past year.

A break and consolidation above the $2,717 to $2,817 resistance zone could trigger a substantial rally, with potential targets ranging from $4,000 to $4,800. Support levels to watch are $2,518, $2,425, and $2,400, while the key resistance levels remain at $2,717 and $2,817.

The Importance of Volume Profile

The volume profile on the weekly chart shows significant accumulation in this price range, signaling continued confidence among large investors. This accumulation is a positive sign for Ethereum’s long-term outlook, as it suggests that major players are still interested in buying and holding ETH at these levels.

The recent liquidation event, followed by a swift recovery, further supports a bullish outlook. This event suggests that the market is poised to move higher if key resistance levels are breached.

Ethereum Price Analysis

As of August 11, Ethereum is trading at $2,620, reflecting a 0.82% increase in the last 24 hours. However, it has seen an accumulated loss of 9% over the past seven days. For traders and investors, the focus remains on the $2,717 to $2,817 resistance zone. A successful breakout above this level could pave the way for Ethereum to reach new highs, with $4,000 being a realistic near-term target.

However, if the bulls fail to clear this resistance, a pullback toward the $2,500 support level could occur. While the overall technical structure suggests that Ethereum is positioned for a significant move, the bearish elements of the chart highlight the importance of overcoming these key resistance levels to sustain the bullish momentum and propel the cryptocurrency to new heights.

Ethereum’s Bullish Outlook Despite Volatility

Despite the recent downturn and market volatility, Ethereum’s long-term outlook remains bullish. The recovery phase that began after the sharp decline has shown that the bulls are still in control. The key to maintaining this momentum lies in breaking through the critical resistance levels and holding above the important support levels.

The 50-week and 200-week moving averages provide strong support, while the CHOCH pattern on the daily chart indicates a possible shift to a bullish market structure. If Ethereum can continue to build on this momentum, the $4,000 target may not be far off.

Technical Analysis of Ethereum’s Market Structure

Ethereum’s market structure is currently at a critical juncture. The price action around the $2,717 to $2,817 resistance zone will play a significant role in determining the next phase of Ethereum’s market trajectory. The volume profile indicates that large investors are still confident in Ethereum’s potential, as evidenced by the significant accumulation in this price range.

The CHOCH pattern suggests a shift from a bearish to a bullish market structure, which could further support Ethereum’s upward move. However, it is important to remain cautious, as the market could still face challenges if the bulls fail to clear the key resistance levels.

The Role of Moving Averages in Ethereum’s Market

Moving averages play a crucial role in Ethereum’s market structure. The 50-week moving average has historically been a strong support level, and the recent bounce from this area suggests that Ethereum could be on the verge of a major rebound. The 200-week moving average, located around $2,156, also provides critical long-term support.

If Ethereum can hold above these moving averages and break through the $2,717 to $2,817 resistance zone, it could trigger a substantial rally. The potential upside targets range from $4,000 to $4,800, depending on how the market develops in the coming weeks.

Ethereum’s Future: A Bullish Path Ahead?

The future of Ethereum looks promising, with many indicators pointing to a potential bullish path ahead. The recent recovery, strong support levels, and the potential for a breakout above key resistance zones all suggest that Ethereum could be on the verge of a significant move higher.

However, it is important to keep an eye on the key resistance levels, as they will play a crucial role in determining Ethereum’s next steps. If the bulls can break through these levels and sustain the momentum, Ethereum could reach new highs in the near future.

The Potential Risks

While the outlook for Ethereum is generally positive, there are still risks to consider. The market is volatile, and the recent downturn has shown that prices can drop quickly. If the bulls fail to break through the key resistance levels, Ethereum could see a pullback toward the $2,500 support level or even lower.

Investors and traders should remain cautious and be prepared for potential fluctuations in the market. It is important to watch the key support and resistance levels closely, as they will provide valuable insights into Ethereum’s future trajectory.

Ethereum’s market dynamics are showing signs of a potential major rebound. The bulls are targeting $4,000, and the recent recovery suggests that this target is within reach. However, the market still faces challenges, and the key resistance levels between $2,717 and $2,817 will play a crucial role in determining the next phase of Ethereum’s journey.

By focusing on the technical setups, resistance levels, and long-term support, traders and investors can better understand the potential paths for Ethereum in the coming weeks. While the market remains volatile, the overall outlook for Ethereum is bullish, with significant upside potential if key levels are breached.

Bitcoin

Bitcoin Plunges 28%: How Institutional Investors Profited by Buying the Dip

by Tatjana August 10, 2024

written by Tatjana 9 minutes read

Bitcoin’s Big Drop: Why Did It Happen and What Did Investors Do?

Bitcoin plunged 28% this week, and it’s making headlines everywhere. But what does it all mean? Why did it happen, and what are institutional investors doing about it? Let’s break it down.

The Big Sell-Off: What Went Wrong?

This week, the crypto markets took a huge hit. Bitcoin dropped by 28%, and other major cryptocurrencies like Ethereum, also known as Ether, weren’t spared either. Ether’s price plummeted as well, wiping out $367 billion in value. This all happened just as stock markets in Japan were also nosediving, causing even more panic among investors.

So, what triggered this massive sell-off? One of the main reasons is the global market turmoil. The U.S. stock market, which usually moves in sync with cryptocurrencies, faced some serious challenges this week. The unwinding of the yen carry trade, where investors borrow money in yen to invest in other assets, contributed to this chaos. When the yen suddenly strengthened, it led to a ripple effect that hit markets around the world, including the crypto market.

Institutional Investors Bought the Dip

Despite the chaos, many institutional investors saw this as a golden opportunity to buy Bitcoin and Ether at lower prices. These investors include big banks, hedge funds, and wealth management firms like Morgan Stanley, BlackRock, and Fidelity.

These institutions bought the dip, which means they purchased more Bitcoin and Ether while the prices were low. This strategy paid off because, by the end of the week, the crypto market started to recover. The market cap of all tokens bounced back and climbed above $2.1 trillion, showing that the panic might have been short-lived.

The Role of Spot Crypto ETFs

Spot crypto exchange-traded funds (ETFs) played a significant role in this buying frenzy. ETFs are investment funds that hold assets like Bitcoin or Ether, and they can be traded on stock exchanges just like regular stocks. This week, despite the sell-off, spot Ether ETFs saw net inflows of around $120 million. Most of these purchases happened on Monday and Tuesday when Ether’s price was down 42% from its March high of over $4,000.

For Bitcoin, the story was a bit different. Net flows for spot Bitcoin ETFs were negative at the beginning of the week, meaning more people were selling than buying. But things turned around by midweek, with these funds adding over $245 million on Wednesday and Thursday.

Morgan Stanley’s Bold Move

One of the most significant developments this week was Morgan Stanley’s decision to allow its financial advisors to pitch spot Bitcoin ETFs to clients. This move is a big deal because Morgan Stanley is one of the world’s largest wealth management firms, managing $1.5 trillion in assets.

Morgan Stanley’s clients, who are mostly high-net-worth individuals with at least $1.5 million in net worth, now have easier access to these crypto products. This could pave the way for other big players on Wall Street to follow suit, increasing the overall investment in cryptocurrencies.

What’s Next for Other Financial Institutions?

With Morgan Stanley leading the way, other banks and asset managers might feel pressured to offer similar products. Many of these institutions have been on the sidelines, conducting in-house due diligence on spot crypto ETFs. But now, with Morgan Stanley making the first move, they may soon follow.

The next big update on institutional interest in spot Bitcoin ETFs will come on Wednesday, when the 13F filing deadline hits. This filing will show how much exposure banks and hedge funds now have to these spot crypto products. It’s expected that more financial institutions will start revealing their stakes in these funds, indicating growing confidence in the crypto market.

The Recovery: A Calm Weekend After a Wild Week

After a rollercoaster of a week, the crypto markets seem to be calming down as we head into the weekend. Bitcoin hit an intraday high of nearly $63,000 on Friday, and Ether was trading above $2,700 earlier in the day. This recovery suggests that the worst of the sell-off might be over, at least for now.

One reason for this recovery is the liquidation of over $100 million in short bets on Bitcoin in the past 24 hours. Short bets are when investors bet that the price of an asset will go down. When these bets were liquidated, meaning the investors had to buy back Bitcoin to cover their losses, it helped support Bitcoin’s price and contributed to its gains.

Ripple’s SEC Battle: What It Means for Crypto Regulation

While all of this was happening, Ripple, another major player in the crypto world, was dealing with its own problems. Ripple’s XRP token surged 22% on Thursday after a U.S. judge sided with the company in a legal battle against the U.S. Securities and Exchange Commission (SEC).

The SEC had accused Ripple of selling unregistered securities, and the case has been ongoing for years. This week, District Judge Analisa Torres ordered Ripple to pay $125 million in civil penalties, which is far less than the $2 billion the SEC was originally seeking. This ruling is seen as a victory for Ripple and the broader crypto industry, as it could set a precedent for how other cryptocurrencies are regulated in the future.

Crypto Stocks Also Take a Hit

It wasn’t just cryptocurrencies that suffered this week. Some of the biggest crypto-aligned stocks, like Coinbase, MicroStrategy, and Riot Platforms, also faced significant losses. These companies posted their third straight weekly losses, reflecting the broader market sell-off.

Coinbase, one of the largest cryptocurrency exchanges in the world, saw its stock price drop as the crypto market tumbled. MicroStrategy, a company known for holding large amounts of Bitcoin on its balance sheet, also took a hit. Riot Platforms, a major Bitcoin mining company, faced similar challenges as the value of the cryptocurrency it mines fell sharply.

The U.S. Stock Market’s Influence on Crypto

One of the key takeaways from this week is how closely the crypto market is tied to the U.S. stock market. For most of the week, the crypto market traded in lockstep with U.S. equities. When U.S. stocks dropped, so did cryptocurrencies. But when the stock market recovered, the crypto market followed suit.

This connection isn’t new, but it’s becoming more apparent as institutional investors, who traditionally invest in stocks, increase their exposure to cryptocurrencies. These investors tend to react to the same macroeconomic triggers, such as jobless claims data and changes in interest rates, which means that the crypto market is now more influenced by traditional financial markets than ever before.

Regulatory Winds Are Shifting

Another factor that helped the crypto market recover this week is the changing regulatory environment. The Ripple case is just one example of how U.S. regulators are starting to take a more measured approach to the crypto industry.

In addition to the Ripple case, there have been other positive developments for the industry. For example, a recent ruling by the U.S. Court of Appeals in favor of another cryptocurrency company has set a positive tone for the future of crypto regulation. This is good news for the industry, as it suggests that regulators may be more willing to work with crypto companies rather than just penalize them.

What’s Next for the Crypto Market?

Looking ahead, the crypto market is likely to remain volatile. While this week’s recovery is encouraging, it’s important to remember that the market is still down significantly from its recent highs. Both Bitcoin and Ether are still trading well below their peaks, and the market as a whole is likely to face more challenges in the coming weeks.

However, the fact that institutional investors are continuing to buy the dip is a positive sign. It suggests that there is still strong interest in cryptocurrencies, even in the face of market turmoil. As more financial institutions like Morgan Stanley and Fidelity start to offer crypto products to their clients, we could see even more investment flow into the market.

In the meantime, investors should keep an eye on the upcoming 13F filings, which will provide more insight into how much exposure banks and hedge funds have to spot crypto ETFs. These filings will give us a better understanding of where the big money is going and what it means for the future of the crypto market.

This week has been a wild ride for the crypto market, with Bitcoin plunging 28% and Ether following suit. But despite the chaos, institutional investors have been buying the dip, and the market is showing signs of recovery. With spot crypto ETFs gaining traction and financial institutions like Morgan Stanley leading the way, the future of the crypto market looks bright. However, it’s important to stay informed and be prepared for more volatility in the weeks to come.

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