Newsletter 81
5th July 2024
THE MARKET THIS WEEK
The bottom of Bitcoin is almost here as miners give up close to the FTX implosion level: According to CryptoQuant, the current levels of miner capitulation are similar to those at the end of 2022, the bottom of the market following the collapse of FTX. After the largest cryptocurrency in the world had a 13% decline over the last 30 days, Bitcoin (BTC) miners are exhibiting signs of capitulation, an occurrence usually associated with a market bottom.
Biden’s Chances of Resigning Rise to Nearly 80% on Polymarket Following the New York Times Report Many pundits in Washington have downplayed Biden’s chances of beating Trump in the 2024 election following a poor debate showing that highlighted his advanced age. However, as of right now, The New York Times is claiming that Biden believes his chances of winning are dwindling.
Mentions of “buy the dip” on social media sites increase as Bitcoin falters. In the past two days, as Bitcoin dropped to levels not seen in months, the phrase “buy the dip” has been mentioned twice as often on Reddit, X, 4chan, and Bitcoin Talk. Over the past two days, as Bitcoin dropped below $60,000 for the second time in four months, discussions about “buying the dip” on social media sites Reddit, X, 4chan, and Bitcoin Talk have momentarily increased significantly.While cryptocurrency traders argued about which stage of the bull market to be in, Santiment, a research organization, monitored the total number of times the word was said on all four platforms. Bitcoin Bitcoin plummets to $53K, but experts caution that the worst may yet come. Experts predict that Bitcoin may go as low as $50,000, but a solid macro environment and a well-established “buy the dip” mentality
A Better Way to Fund and Develop Groundbreaking Ideas through Decentralized Science What if a transparent, decentralized procedure could be used to finance the next big-ticket drug? This will guarantee that all contributors receive just compensation and acknowledgment, in addition to democratizing the funding of important research. Those who criticize Web3 frequently claim that it is attempting to solve an issue that no one is experiencing. And it’s understandable that way, given that most famous people use meme currencies to further their own financial interests, leaving their followers holding the bag when the tokens run out.
Tokenized US Treasury bonds are released by a crypto startup on Bitcoin layer-2s. The new tokenized assets provide commendable income along with the stability of the Bitcoin network. The BTC network’s stability and higher yield than Stablecoin According to the company, using Bitcoin layer-2 decentralized financial ecosystems combines the dependability of the US dollar with the stability of the Bitcoin network. The functionality and scalability of the network are improved by Bitcoin layer-2s.
KEY METRICS
Total Crypto Market Cap : $2.65T
Bitcoin Market Cap : $ 1.32T
Ethereum Market Cap : $ 421.48B
ETH/BTC Ratio : 0.05
Ethereum Gas Price : 12 gwei
DeFi TVL : $176.01b
Fear and Greed Index : 29 (Extreme Greed)
Federal Reserve Balance Sheet : $7.23 T
BATTLE OF THE BULL AND BEAR
Bitcoin Drops Below $54,000 While Mt. Gox Transfers $2.6B in Bitcoin BTC breaks important price support as it drops to its lowest point since late February. As a sizable portion of Bitcoin (BTC) was transferred to a new wallet by the now-defunct exchange Mt. Gox, possibly in anticipation of creditor repayments, the price of BTC fell for a fourth day. The top cryptocurrency in terms of market value dropped by more than 4% to $53,600, the lowest since February.
Bulls in Cryptocurrency Rack Up $580M in Liquidations as Ether, Dogecoin, Solana, and Bitcoin Fall 8% Major cryptocurrency markets had a 20% decline in the last 24 hours as traders were alarmed by movements from a wallet connected to Mt. Gox in the early Asian trading hours, which caused the market to fall 10% on average. Bitcoin {[BTC}} lost all of its gains from February as it dropped 8% to briefly go below $54,000 before beginning to rise a little. More than 10% fell in ether (ETH), 8% fell in cardano’s ADA and Solana’s SOL, and about 18% fell in dogecoin (DOGE).
Bitcoin Plunges Below 200-Day Average, Highlighting the Bull Market Trendline A market is considered to be in a downtrend if it continuously trades below the 200-day moving average. The biggest cryptocurrency, Bitcoin (BTC), continued to fall for a third day in a row, closing below the 200-day simple moving average (SMA), which is a reliable gauge of long-term price patterns in both traditional and cryptocurrency markets.
On hearing that Mt. Gox had moved $2.7 billion from its cold wallets to a fresh wallet, the price of bitcoin dropped to $55,200. A new cryptocurrency monitoring system has been introduced by the South Korean government, claiming it will assist in tracking “abnormal transactions.” Meanwhile, concerns have been raised regarding the potential harmful effects of the German government’s recent Bitcoin transfers on the market.
10x Research predicts that Bitcoin will plummet to $50,000. 10x Research claims there is a correlation between decreasing buy flows and increasing sale flows and Bitcoin’s probable decline below $50,000. Experts at 10x Research predict that on July 4, Bitcoin will drop from over $60,000 to below $57,000. They speculate that this steep slide might just be getting started and could go all the way down to $50,000. A notable change in market sentiment is indicated by the psychological $60,000 benchmark breaking toward $50,000, which 10x Research explains as buy flows “drying up while sell flows are accelerating.”
WEEKLY REVIEW OF IC15
The global cryptocurrency market remained lower for the third consecutive day due to massive withdrawals. The IC15 Index was down 3,648 points to 73,575 at 4 p.m. All the coins in the Index were trading negatively, with Shiba Inu, Dogecoin, Chainlink, and Solana being the major losers in the 7–9% range.
The Basel Committee on Banking Supervision has approved the final disclosure framework for banks to report their crypto exposure, which will be implemented by the start of 2026. The Bank of Russia plans to legalize stablecoins for international payments in a bid to explore alternative ways to trade with China amid sanctions.
The Nigerian government plans to establish tech research centres for emerging technologies involving artificial intelligence (AI), the Internet of Things (IoT), and blockchain technology across the nation’s six geopolitical zones. The United Nations Development Programme (UNDP) partnered with the Dfinity Foundation to improve financial access for Micro, Small, and Medium Enterprises (MSMEs) by leveraging blockchain technology.
WEEKLY SPOTLIGHT
Massive withdrawals caused the global cryptocurrency market to stay lower for a third day in a row. At 4 p.m., the IC15 Index had dropped 3,648 points to 73,575. All of the index’s currencies were seeing negative trading, with the biggest losers in the area of 7–9% being Dogecoin, Solana, Chainlink, and Shiba Inu.
The final disclosure framework for banks to reveal their exposure to cryptocurrency has been agreed by the Basel Committee on Banking Supervision and will go into effect at the beginning of 2026. In an effort to look into alternate avenues for trade with China in the face of sanctions, the Bank of Russia intends to legitimize stablecoins for use in international payments.
Throughout the country’s six geopolitical zones, the Nigerian government intends to build tech research centers for cutting-edge technologies including blockchain, IoT, and artificial intelligence (AI). By utilizing blockchain technology, the United Nations Development Programme (UNDP) and the Dfinity Foundation are working to increase financial access for Micro, Small, and Medium-Sized Enterprises (MSMEs).
