After dipping to the $49,000 level on August 5, Bitcoin is now trading at $57,375. Similarly, Ethereum has regained its footing at $2,519 after plummeting to as low as $2,100 on the same day.

Bullish Sentiments Persist Despite Macroeconomic Risks

Data from Santiment revealed that the crowd played a massive part in crypto rebounding over the past 30 hours. Analysts attribute this rapid rebound to large-scale investors, commonly called whales, who have been actively accumulating these crypto assets.

Read more: Who Owns the Most Bitcoin in 2024?

On-chain data from CryptoQuant shows that over 404,000 Bitcoins have moved to permanent holder addresses in the past 30 days. Ki Young Ju, CEO of CryptoQuant, stated that this is “clearly accumulation.” Ki also noted significant inflows of 40,000 Bitcoin to US spot exchange-traded funds (ETFs) over the last 30 days.

“New whales are accumulating,” he said.

Additionally, Ki pointed out the absence of major selling activity by “old whales,” referring specifically to the large investors who have held their positions for over three years. He noted that these whales sold their holdings to new whales between March and June.

Despite bullish sentiments, Ki acknowledges potential macroeconomic risks that could lead to forced sell-offs. He cited large deposits like those by Jump Trading as examples. Moreover, he noted that some on-chain indicators turned bearish but are borderline.

Amid rising worries about the crypto market’s future due to a recent crash, Ki remains optimistic. He believes that the bull market is still strong.

“If the market doesn’t recover in two weeks, I’ll reconsider. I follow smart money, so if I’m wrong, it means the new whales are either misguided or underestimated the macro environment,” he said.

Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030

Juan Pellicer, Senior Researcher at IntoTheBlock, drew BeInCrypto’s attention to the net inflow of stablecoins to exchanges. Yesterday, it reached $0.99 billion, the highest since April 2023. This net inflow shows that investors are depositing stablecoins, typically intending to purchase assets.

A recent report by CoinGecko further strengthens these beliefs. It stated that the crypto market’s crash during COVID-19 was still five times worse than the recent sell-offs.

“In the last ten years, the worst global crypto market correction has been the -39.6% COVID-19 crash on March 13, 2020. […] In comparison, the largest crypto market sell off to date this year was significantly less severe at only -8.4%, which took place on March 20, 2024,” the report reads.

The post Crypto Whale Accumulations Drive Swift Market Recovery, Say Analysts appeared first on BeInCrypto.

He mentioned that it is essential to continue with the current level of monetary easing.

Economic Turbulence Spurs BOJ’s Low-Rate Strategy

At the Financial and Economic Forum in Hakodate City, Uchida detailed the economic challenges prompting this decision. He highlighted the rapid depreciation of the dollar and a global decline in stock prices. Uchida attributed these trends to fears of a US economic slowdown.

“We took into consideration the fact that import prices have started to rise again due to the weak yen. This is a more risk-neutral measure, as it is a risk factor that could cause consumer prices to rise,” he explained.

Read more: How to Protect Yourself From Inflation Using Cryptocurrency

The yen-to-dollar exchange rate’s significant volatility has caused a noticeable decline in Japanese stock prices relative to other countries. Uchida noted that such fluctuations in stock prices directly affect personal consumption, corporate investment behavior, and the broader economic outlook.

Separately, Arthur Hayes, co-founder of the BitMEX crypto exchange, has provided insights into Japan’s current economic situation and monetary policy. According to Hayes, Japan’s low interest rates make it an attractive environment for a financial strategy known as the “carry trade.”

A carry trade involves borrowing a currency with a low interest rate, such as the yen, and using it to buy financial assets in another currency that yield higher returns. This strategy can be profitable if the borrowed currency depreciates, as the debt becomes cheaper to repay. Conversely, it can be costly if the borrowed currency appreciates.

“Some investors hedge the currency risk; some do not. In this case, because the BOJ can print an infinite amount of yen, there is no need for Japan Inc. to hedge its borrowed yen. Japan Inc. refers to the BOJ, corporations, households, pension funds, and insurance companies. Some entities are public, some are private, but they all act together to better Nippon, or at least they intend to,” Hayes wrote in his latest blog post.

Arthur Hayes Explains Japan’s Carry Trade Opportunity for Bitcoin Investors

Griffin Ardern, Head of BloFin Research & Options, told BeInCrypto the recent decline in BTC and ETH may stem from the end of the yen-dollar carry trade. As the Bank of Japan raised interest rates to control the exchange rate, many investors who had traded BTC based on this carry trade chose to sell BTC for profits and repay yen debts, causing the price trend of BTC to align with that of USD/JPY.

Hayes argues that this creates a favorable environment for investing in high-risk assets like Bitcoin. The steady depreciation of the yen, fueled by the BOJ’s monetary policies, makes Bitcoin an attractive investment for those seeking higher returns and wealth protection.

This economic context aligns with the move from Japanese investment firm Metaplanet, which has consistently purchased Bitcoin since April. BeInCrypto reported that this strategy is influenced by the desire to reduce risks tied to Japan’s economic environment. By adopting Bitcoin as a reserve asset, Metaplanet aims to reduce its exposure to the yen.

On August 6, Metaplanet revealed its plan to issue free stock acquisition rights to raise 10.08 billion JPY. This initiative allows all common shareholders to buy Metaplanet stock from September 6 to October 15 at a predetermined price under the company’s eleventh series of stock acquisition rights.

Read more: Who Owns the Most Bitcoin in 2024?

Metaplanet will allocate 8.5 billion JPY (approximately $58.76 million) from this offering to purchase more Bitcoin. According to the latest data, Metaplanet currently holds 246 BTC, valued at around $13.98 million.

The post Experts Weigh In on How Bank of Japan’s Dovish Stance Benefits Bitcoin Investors appeared first on BeInCrypto.

The crypto industry is recording a shift in sentiment, with Bitcoin up 8%, holding well above $55,000, and dragging altcoins along with it.

Blow Off Top To Come In Crypto and Stock Markets

Zerberg anticipates new all-time highs (ATHs) in the US stock market as well as crypto. He says the current bearish sentiment will transform into a strong bullish sentiment and euphoria, leading to a blow-off top.

“As we in the coming few months reach ATHs in the US stock market and in BTC+ Crypto, the current Bearish sentiment will develop into strong Bullish sentiment and euphoria – and the markets will soar! I will be told that I am wrong about my forecast of a coming top in US markets. But Recession is coming and the largest bear market since 1929 will begin. First, blow-off top (in US markets!),” Zerberg wrote.

In crypto jargon, a blow-off top is a trading term that describes a chart pattern showing a steep and rapid increase in Bitcoin price and trading volume. After that, a steep and rapid drop in price happens, accompanied by high volume. Analysts interpret the rapid changes to mean the market was way overbought.

Read more: 5 Best Platforms To Buy Bitcoin Mining Stocks After 2024 Halving

Zerberg’s forecast comes after panic selling on Monday turned into impulse buying. Nevertheless, Jack Mallers, a popular market analyst, ascribes the sell-off to the unique availability of open Bitcoin markets as the crisis intensified.

“In crises, markets sell what they can, not what they want. Bitcoin is down because it was the only market open to sell on Sunday night, not because the only fixed supply of money we have is now less valuable. Bitcoin isn’t hedging the broken financial system, it’s replacing it,” Mallers explained.

At the height of the crisis, liquidity was needed, and it could only come from one place on a Sunday night. Accordingly, Bitcoin’s liquidity positioned it for losses, as investors had a gateway to exit the market. This explanation highlights Bitcoin’s role in fixing the financial system.

“Liquid assets always be liquidated first in liquidity crises. Bitcoin is insanely liquid…try and sell $275k of gold at 11:27 pm on a Sunday,” Adam, a Bitcoin mining infrastructure developer, said.

As BeInCrypto reported, markets are already recovery mode after ETF (exchange-traded funds) investors reportedly seized the opportunity to buy the dip.

ETF Investors, Whales Buy The Dip After Marketwide Jitters

On Tuesday, analyst James Seyffart observed, “ETF investors, in aggregate, likely bought the dip on Ethereum today.” Indeed, data shows that ETH ETFs recorded up to $48.73 million in net inflows on Monday, effectively beating Bitcoin ETFs, which saw $168.44 million in net outflows.

Bitwise CIO Matt Hougan reported positive inflows into the firm’s ETF instruments, IBIT for Bitcoin and ETHW, acknowledging that ETF investors bought the dip.

“We had net inflows into both our Bitcoin and Ethereum ETFs today. ETF investors buying the dip,” Hougan wrote.

Read more: How to Invest in Ethereum ETFs?

Notably, Bitcoin ETFs witnessed some of the most substantial trading volumes on August 5 within minutes of the US session opening. BlackRock’s iShares ETF IBIT, in particular, surpassed $1.55 billion in trading volume in Monday’s first hour of trading. ETF analyst Eric Balchunas said this was concerning.

“Bitcoin ETFs have traded about $2.5b so far, a lot for 10:45 am, but not too crazy (full history below). If you are a Bitcoin bull you do not want to see crazy volume today, as ETF volume on bad days is a pretty reliable measure of fear. On the flip, deep liquidity on bad days is part of what traders and institutions love about ETFs. You also want to see volume too, good for the long term,” Balchunas commented.

Alongside ETF investors, whales are also scooping Bitcoin at a discount. According to a press release shared on Monday, healthcare company Semler Scientific acquired 101 BTC tokens. The company recently adopted a Bitcoin treasury, with the latest buy bringing its total holdings to 929 BTC.

The firm started buying Bitcoin in late May, acquiring 581 BTC for around $40 million. It made two more Bitcoin investments in June, effectively emulating the precedent set by Michael Saylor’s MicroStrategy. So far, the company has spent $63 million in Bitcoin purchases, steadily integrating Bitcoin into its treasury operations.

The post US Stocks and Crypto Headed for Blow-Off Top, Analyst Says appeared first on BeInCrypto.

This trend highlights a growing institutional interest, even amid the ongoing market fluctuations.

Capula Management and Semler Scientific Bet Big on Bitcoin

On Monday, Capula Management disclosed a substantial purchase amounting to over $464 million in Bitcoin through spot exchange-traded funds (ETFs), as per its latest 13F filings with the US Securities and Exchange Commission. These filings revealed that Capula holds 4,022,346 shares in the Fidelity Wise Origin Bitcoin ETF (FBTC) and 7,419,208 shares in BlackRock’s iShares Bitcoin fund (IBIT), collectively valued at approximately $464 million.

Despite Bitcoin’s drop to a five-month low at $49,000, the hedge fund’s aggressive acquisition highlights a strong belief in the digital asset’s resilience, which soon rebounded to over $55,700.

Read more: How To Trade a Bitcoin ETF: A Step-by-Step Approach

According to Eric Balchunas, Bloomberg’s ETF analyst, trading volumes have remained strong during these market shifts, with around $2.5 billion exchanged during peak hours. Nonetheless, he warned that high volumes on down days are often indicative of investor anxiety.

“If you [are a] Bitcoin bull, you actually dont want to see crazy volume today as ETF volume on bad days is a pretty reliable measure of fear,” Balchunas wrote on X (Twitter).

This observation was confirmed when Bitcoin ETFs saw a net outflow of 168.44 million on a notably volatile Monday.

Meanwhile, Semler Scientific has been intensifying its Bitcoin strategy. In its second-quarter financial report for 2024, the company announced the acquisition of an additional 101 BTC, costing $6 million.

The firm’s total investment now stands at 929 BTC, with an overall expenditure of $63.0 million. This strategy involves utilizing operational cash flows and proceeds from a $150 million shelf registration statement for ongoing purchases.

Read more: Who Owns the Most Bitcoin in 2024?

Eric Semler, chairman of Semler Scientific, shared his enthusiasm about their strategy.

“We are very encouraged by the strong positive reaction to our recent announcement of a Bitcoin treasury strategy. We continue to firmly believe that Bitcoin is a compelling investment and plan on acquiring additional BTC with our cash from operations, as well as with cash generated from the sale of securities under our $150.0 million shelf registration statement, once effective,” Semler said.

These strategic moves by Capula and Semler reflect a broader pattern of increasing institutional engagement with cryptocurrencies. It also suggests a deeper acceptance of digital assets within traditional investment portfolios.

The post Capula Management Invests $464 Million in Spot Bitcoin ETFs appeared first on BeInCrypto.

While the platform’s impartiality has been questioned, especially regarding showing market sentiment, its role in driving crypto adoption cannot be ignored.

Polymarket Traders Bet Big

According to Dune Analytics, Polymarket has seen a significant increase in daily volume and active traders as participants try to predict market outcomes. These metrics have been steadily rising since May.

Narratives such as US elections continue to drive this interest. However, the latest crypto market crash has also contributed to the surges in activity. Different dashboards on Polymarket show participants betting on multiple questions.

Among them, the odds of Bitcoin (BTC) price dipping below $45,000 before September and Ethereum (ETH) reclaiming above $3,000 on August 9. BeInCrypto data shows that at press time, BTC is trading at $53,625, while ETH remains below $2,400.

Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030

The US presidential race remains one of the favorite topics among Polymarket users. The crypto community is increasingly engaging in predictions, wagering on potential outcomes.

Republican ticket nominee Donald Trump is leading with 54% success odds. In contrast, Kamala Harris stands at 43%, while former US First Lady Michelle Obama has 2% odds.

Read more: How Can Blockchain Be Used for Voting in 2024?

Crypto Community Dives into Macro

Polymarket bets also show traders’ interest in whether there will be an “emergency rate cut in 2024.” This gamble comes as markets decry the latest industry slump.

“Jerome Powell needs to call a meeting now and announce an emergency rate cut,” Bitcoin veteran Kyle Chassé remarked.

In a recent meeting, Federal Reserve chair Jerome Powell hinted at potential policy easing in late 2024. He acknowledged that a rate cut could be on the table in September. Whether an emergency rate cut will come amid remains unknown.

Besides emergency rate cuts, Polymarket participants speculate about a possible recession in 2024. However, this bet could roll over soon as US economic activity challenges recession warning.

As BeInCrypto reported, markets watched Monday’s S&P Final US Services PMI data. The latest data release shows that economic activity in the services sector expanded in July, with the Services PMI registering 51.4%, showing sector expansion for the 47th time in 50 months.

“The recent data suggests a positive short-term outlook for the US economy, indicating a reduced risk of an economic recession. This news is not only beneficial for the US but also for the global economy, as the US represents the largest economy worldwide and has strong links with other economies. A recession in the US could trigger a global economic downturn, similar to the 2008 crisis. Conversely, if the US manages to avoid a recession, it will benefit not just the country but the global economy as well,” Matteo Greco, Research Analyst at Fineqia, told BeInCrypto.

Read more: How to Protect Yourself From Inflation Using Cryptocurrency

The bullish development is helping Bitcoin rebound. It points to higher demand for services and, therefore, increases in inflows to businesses. Positive economic data often influences investor sentiment in the crypto space.

As traditional markets strengthen, investors may become more confident in the economy. This could increase risk appetite and increase interest in alternative assets like cryptocurrencies.

The post Bitcoin Crash, US Elections, Emergency Rate Cut: Polymarket Traders’ Top Bets appeared first on BeInCrypto.

Portfolio rebalancing and risk diversification are among the most effective strategies for wave market volatility.

Top Altcoin Picks as Bitcoin Leads Crypto Market Dip

AltcoinDaily bases his altcoin choices on the Federal Reserve’s (Fed) possible pivot in September. In his opinion, this could kickstart an altcoin season, with Ethereum (ETH) and Solana (SOL) among the sure bets. Beyond the two, the analyst foresees “six new crypto coins set to explode before 2025.”

Aethir (ATH)

Spotting Aethir as an emerging leader in the DePIN space, AltcoinDaily sees its potential to build scalable decentralized cloud infrastructure for gaming and AI as an important fundamental. As a GPU marketplace, Aethir is positioned to benefit from the AI sector’s GPU demand, which drives DePIN projects offering cost-effective decentralized infrastructure.

Sustained by the pressure of GPU computing from tech companies, production limits, and growing demand due to AI provide tailwinds. In this regard, other altcoins in the sector that may be of interest include Filecoin (FIL), Render (RNDR), Akash Network (AKT), and io.net (IO).

Read more: What Is DePIN (Decentralized Physical Infrastructure Networks)?

Ondo Finance (ONDO)

ONDO is presented as “institutional grade finance on-chain for everyone.” AltcoinDaily says this token is primed for gains before 2025. He bases his optimism on BlackRock CEO Larry Fink’s statement that tokenization of financial assets is the future.

This selection comes as Real World Assets (RWA) has been a key narrative in 2024, featuring among the industry’s leading trends. Notably, the Ondo Finance ecosystem enjoys backing from TradFi titans such as Founders Fund, Pantera Capital, and Coinbase.

“Projects like RWA and DePIN, which integrate productive assets from the physical world such as CPUs, GPUs, WiFi routers, dash cameras, and personal weather stations under leading DePIN initiatives, are likely to follow a different trajectory. As these projects scale in terms of users and adoption, their protocols should mature into valuations that traditional investors find more understandable,” Fluence Co-Founder Tom Trowbridge recently told BeInCrypto.

ONDO peers in the RWA sector that may also be of interest include Propy (PRO), TrueFi (TRU), and OriginTrail (TRAC).

Lukso (LYX)

The altcoin represents a “blockchain built for social, cultural, and creative” dynamics, the key to unifying digital lives. It is an Ethereum-twin blockchain with a new set of standards and protocols, drawing the analyst to call it “a better Ethereum”.

“Applications such as FriendTech and the rise of SocialFi made a big presence in 2024. As the social aspect of blockchain continues, Lukso is a protocol to watch,” AltcoinDaily indicates.

Capital inflows into LXY could spill over to peer SocialFi tokens such as LimeWire (LMWR) and Roundtable Token (RTB), formerly BBS, the reward token for the Roundtable forum.

Read more: What is Friend.Tech? A Deep Dive Into The Web3 Social Media App

AIT Protocol (AIT)

The AIT Protocol uses train-to-earn models to enhance artificial intelligence (AI) development. It entails training AI models using blockchain to create a decentralized labor market for AI data annotation. Animoca Brands is among the protocol’s investors.

Amid growing demand and, therefore, adoption among Asian markets, BitPanda and BingX exchanges listed AIT only recently. The protocol has its version of ChatGPT, achieved through the Albert.AITProtocol.ai product, which solves complex math and logical questions.

“AIT Protocol is a hidden gem in the AI space,” the analyst added.

Foxy (FOXY)

The altcoin passes as the main meme coin in the Linea ecosystem, an Ethereum Layer 2, making transactions faster and cheaper. It is a peer for the Base and Arbitrum chains, with the analyst highlighting FOXY as an undervalued altcoin.

According to AltcoinDaily, Foxy is best positioned for gains over Base and Arbitrum for the remainder of 2024 because of Linea’s Consensys backing. Coinbase, which backs Base, does the same for Brett, which runs under the Base ecosystem. Therefore, with eyes peeled on meme coins, traders may consider Brett, Snek (SNEK), and Shiba Inu (SHIB).

AltcoinDaily also lists Off The Grid, a project by Gunzilla Games, although not launched yet. With sentiment around the game growing, particularly among gamers, investors may also consider projects like ImmutableX (IMX), Stargaze (STARS), Exverse (EXVG), Superverse (SUPER), and Illuvium (ILV).

Altcoin Season Thoughts

As BeInCrypto reported, Ki Young Ju, founder of the on-chain analysis platform CryptoQuant, predicted an altcoin season soon. He based the prediction on increasing activities by crypto whales that seem to be preparing for an altcoin rally.

“The limit buy order volume for altcoins, excluding Bitcoin and Ethereum, is increasing, indicating that strong buy walls are being set up,” Ju said.

Read more: 11 Cryptos To Add To Your Portfolio Before Altcoin Season

Amidst the ongoing market crash, investors may see an opportunity to acquire tokens at a discount. Nevertheless, others, like Brian Quinlivan, lead analyst at Santiment, observe a lack of enthusiasm for the altcoin season due to recent price dips.

“As for mentions of altcoin season, we aren’t seeing any significant trader enthusiasm for it. Traders have at least been a bit more vocal since we started seeing prices dip over the past 3 days,” Quinlivan told BeInCrypto.

The post Analyst Reveals Top Altcoin Picks for H2 2024 appeared first on BeInCrypto.

Crypto markets continue to bleed, starting the week off badly. Nevertheless, the crash may provide an opportunity for willing investors to buy the dip.

Bitcoin Saw $400 Million Outflows Last Week

With total crypto investments outflows reaching $528 million, Bitcoin led the negative flows with $400 million. Ethereum followed with $146 million in outflows, bringing the net outflows since the ETH ETFs (exchange-traded funds) launch in the US to $430 million. Solana recorded $2.8 million in negative flows.

For Bitcoin, it marked the first outflow after five weeks of positive flows. CoinShares researchers ascribe it to market fears, citing concerns of a recession in the US, geopolitical turmoil, and “consequent broader market liquidations across most asset classes.”

Markus Thielen, Founder and CEO at 10x Research, seems to agree with the recession argument in a statement to BeInCrypto.

“Bitcoin and Ethereum tend to underperform during periods that resemble or approach a recession in the United States. Additionally, investors are reducing their positions as prices have fallen below the average entry point for ETF investors, which is approximately $60,000,” Thielen said.

Read more: How To Trade a Bitcoin ETF: A Step-by-Step Approach

The US session’s opening will be interesting to watch, given this market closed on Friday with Bitcoin at $61,498. Between then and Monday, BTC has lost over $10,000 worth of value, which will likely trigger a response from ETF investors once the market opens on Monday.

Specifically, investors should expect price adjustment, potentially leading to a sharp drop in the Bitcoin ETFs’ trading price. Subsequently, investors’ reactions could cause increased volatility in the ETF market, with some selling their holdings to avoid further losses. Others may yet see it as a buying opportunity, with both perspectives driving trading volume as investors adjust their positions.

“While institutions might incur losses of 20% or 40%, they won’t hold positions until they become worthless. Every trader, institutional or retail, must take responsibility for risk management and establish an acceptable threshold for remaining long in their positions,” Thielen stated.

Bitcoin Drop to $42,000 Would Send Ethereum to $2,000

The research highlights that ETF investors bought the dip when Bitcoin dropped below $60,000 in July. This accumulation came despite the average ETF holder experiencing losses, rendering $60,000 the level where BTC mining becomes unprofitable for the industry. It fuels significant price declines amid miners’ high beta.

Accordingly, the researchers anticipate Bitcoin’s price dropping to $42,000 after the $55,000 support level capitulated. This could draw Ethereum down to $2,000, with the researchers citing economic weakness, ongoing weak market structure, on-chain data, and cycle analysis, which suggest further stress ahead. Notably, the researchers have gained prominence after multiple nearly spot-on predictions.

Among them, in October 2022, the experts predicted a 2024 halving price target of $63,160 for Bitcoin, but BTC topped out at around $63,491 on April 20. They also called a $45,000 year-end target in 2023, which ended at $43,613. In February, researchers at 10X set a 2024 Bitcoin target at between $60,000 and $70,000.

Read more: How To Buy Bitcoin (BTC) and Everything You Need To Know

Nevertheless, crypto markets, like other financial markets, are dynamic, with new information changing previous outlooks. Even as sleuths continually reevaluate and analyze the markets, traders must conduct their own research and appreciate the volatility of crypto.

The post Crypto Investments See $528 Million Outflows Amid Recession Fears appeared first on BeInCrypto.

In the aftermath, the profitability of miners continues to suffer as BTC mining machines fall below their break-even point.

Bitcoin Miners Capitulate as Mining Difficulty Soars

Head of Research at Galaxy Alex Thorn recently highlighted the 24th biggest increase in Bitcoin mining difficulty since 2016. According to f2pool, at Bitcoin’s current price of $52,982, BTC mining difficulty is at a 90.67 hashrate.

“Today, Bitcoin has dropped to as low as $52,300. According to f2pool, when Bitcoin dropped to $52,000, only Antminer S21 Hyd and S21, Avalon A1466I, Antminer S19XP Hyd and S19XP were profitable. At $0.07/kWh, most Bitcoin mining machines have fallen below the break-even point,” WuBlockchain reported.

Data shows only a handful of miners remain profitable, with most Bitcoin mining machines falling below the break-even point. The f2pool tool summarizes that all Bitcoin ASICs (specialized Bitcoin mining computers, machines, or generators) with a unit power consumption of 23 W/T or higher are operating at a loss.

Read more: Bitcoin Mining From Home: Is It Possible in 2024?

This means that the cost of electricity and resources required to mine Bitcoin outweighs the rewards earned from mining. This situation can be challenging for Bitcoin miners as it puts pressure on their sustainability. To remain competitive, miners may have to make operational adjustments, such as upgrading to more efficient mining machines or reducing costs.

Some miners may even temporarily shut down operations until market conditions improve. Indeed, this is already happening as blockchain.com data shows nosediving mining hashrate as Bitcoin slides lower.

“One still risk for miners is that fees remain depressed, so mining profitability is currently too much dependent on the price of Bitcoin,” Julio Moreno, Head of Research at Cryptoquant, told BeInCrypto.

Miners operating at a loss can potentially affect the overall supply of Bitcoin. In addition to miners shutting down their operations due to unprofitability, other drivers could be network disruptions, regulatory changes, or natural disasters affecting mining facilities. If a significant number of miners reduce their operations or exit the market, it could decrease the supply of newly minted Bitcoins. 

“Finally looking like we get a real bitcoin mining bear market, where cost of production exceeds sales price until businesses go bust and there is consolidation to reduce costs. Remember kids, without natural predators, nature balances populations out through starvation,” Deso Games wrote.

Mining Stocks Sink Amid Market Weakness

TradingView data shows that US crypto mining stocks are also sinking, mirroring Bitcoin’s weakness. Riot Platforms Inc. (RIOT) has seen a 10% decrease, bringing its share price down to $8.57. MARA, formerly Marathon Digital, is also sinking, as are Cipher Mining and Hut.

Other crypto-related stocks, including Coinbase and Microstrategy, are also suffering. Amid the sell-off, the global crypto market capitalization is down 13.75%.

Bitcoin and major altcoins continue to see losses due to concerns about macroeconomic factors relating to Japanese stocks and geopolitical tension between Iran and Israel. Other supply overhangs disrupting the Bitcoin market include the German government’s recent sale of 50,000 BTC and distributions from the bankrupt Genesis Trading. There is also an impending sale from the US government, causing markets to cry “Black Monday.”

“Markets Crash In What Is Being Called “Black Monday.” New fears of World War 3 are escalating, markets have had their worst days in 40 years, and more than $1,000,000,000 has been liquidated from crypto in the past 24 hours,” Kyle Chasse noted.

Read more: What Causes Bitcoins Volatility?

While these factors have markets on alert, analysts see a potential market bottom, which would render the dip a good buy opportunity.

The post Bitcoin Mining Difficulty Hits ATH as Crypto Market Jitters appeared first on BeInCrypto.

Ethereum (ETH) mirrored this volatility. CoinGecko data shows it briefly touched $2,100 before trading at $2,359.

Investor Nerves Shaken as Crypto Volatility Surges

These swift fluctuations led to extensive liquidations. According to Coinglass data, the liquidation amount in the last 24 hours has reached $1.06 billion, with $901.33 million from long positions and $159.41 million from short ones. BeInCrypto reported that, around five hours ago, the liquidation figure was only approximately $800 million.

Read more: What Causes Bitcoins Volatility?

This dramatic sell-off highlights the intense volatility within the crypto markets, shaking investor confidence. The on-chain analytic platform Santiment reported that discussions about buying have spiked, but not as much as investors and market watchers expect on such a dramatic drop.

“Expect for the bigger reaction to come as the US wakes up for their Monday morning shock. Emotional sell-offs will only accelerate the timing of crypto’s rebound,” it noted. 

Furthermore, analysts at the on-chain analytic tool CryptoQuant noted that BTC has broken below its support level of $57,000. This might suggest a further drop to $40,000, according to them.

“Currently, traders are facing their most negative unrealized profit margins since November 2022,” CryptoQuant’s analysts added.

Despite the market panic, several analysts provided more optimistic insights into the situation. Charles Edwards, the founder of Capriole Investments, mentioned that the key $52,000 level could trigger a market bounce. Otherwise, the next support could be $44,000.

Prominent crypto trader Bitcoin Jack also suggested that odds might favor a retest of the bottom of the market’s parabolic channel.

“Price just hit the upper bound, again. Bottom in 2026 if we started here. Just an idea, been wrong on this before, so good luck and have fun,” Bitcoin Jack wrote.

Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030

Similarly, CryptoKaleo believes the current conditions present a solid buying opportunity. He advises a measured approach to avoid attempting to “nail the pico bottom.”

“The game plan is still the same. Accumulate now – send into the end of the year,” CryptoKaleo concluded.

The post Analysts See Potential Market Bottom for Bitcoin Amid Turbulence appeared first on BeInCrypto.

In a sentiment-driven market, getting ahead of market-moving economic data releases is critical for traders and investors looking to revise their trading strategies.

What Could Cause Market Volatility This Week

Four events will be of interest to crypto market players this week. They include:

S&P Final US Services PMI

Traders will watch the S&P Global Services PMI on Monday, which is compiled by the S&P Global. Sectors covered include consumer (excluding retail), transport and information, communication, finance, insurance, real estate, and business services.

In July, the S&P Global Services PMI beat expectations of 55, rising to 56 points, higher than June’s 55.3. This indicates expansion in the services sector, a positive sign for traditional markets, showing higher service demand.

US Trade Deficit

Markets also await the US trade deficit on Tuesday, which could cause TradFi and crypto volatility this week. Like the S&P Services PMI, the country’s trade deficit also pointed to increased services in June and more car exports. 

The two positive data points to sharp increases in business inflows, reaching their quickest pace in over a year.

“The US is transitioning to a services economy, less manufacturing,” Lumida Wealth CEO Ram Ahluwalia said over positive services data.

Read more: How to Protect Yourself From Inflation Using Cryptocurrency

These lead to increased investment opportunities and improved economic conditions, boosting sentiment in traditional markets like stocks. The impact may not be as direct or significant on crypto compared to traditional markets. However, if the positive trajectory continues, capital could rotate into risk-on assets like crypto.

Positive economic data often influences investor sentiment in the crypto space. As traditional markets strengthen, investors may become more confident in the economy. This could increase risk appetite and lead to greater interest in alternative assets like cryptocurrencies.

Consumer Credit

The US Consumer Credit data for June will be released on Wednesday, August 7. The data reports outstanding credit extended to individuals. The data helps measure conditions in consumer credit markets and analyze the effects of monetary policy. In May’s report, released on July 8, consumer credit increased at a seasonally adjusted annual rate of 2.7%. Revolving credit increased at an annual rate of 6.3%, while non-revolving credit also increased at an annual rate of 1.4%.

The increase in consumer credit indicates that consumers are borrowing and spending more. In traditional finance markets, this is a positive sign for the economy. It suggests consumers are more confident about their financial situation, which explains the willingness to take on debt to make purchases.

If authorities report a similar trend in June, it would stimulate economic activity and drive corporate earnings, leading to higher stock prices. Nevertheless, there is a risk associated with higher consumer credit levels. If consumers become overleveraged and struggle to repay their debts, it could lead to defaults and financial instability.

This could negatively affect traditional finance markets by increasing volatility and investor uncertainty. Crypto, on the other hand, could benefit indirectly from the implied stronger overall economy. Increased economic stability and consumer activity could attract investors to alternative assets like cryptocurrencies.

Richmond Fed President Tom Barkin’s Speech

The Richmond Fed President Tom Barkin will speak on Thursday, August 8, giving insight into policymakers’ thinking and potentially inspiring traditional market and crypto volatility. He will also comment on what recent economic reports mean for future action from the central bank. The Federal Open Market Committee (FOMC) recently decided to keep interest rates unchanged at 5.25%—5.50% for the eighth consecutive meeting.

Jerome Powell, the Federal Reserve (Fed) chair, did not explicitly signal a September rate cut. He demonstrated increasing but cautious optimism about disinflation progress resuming in the second half of 2024.

“He is clearly expecting a correction of some kind or otherwise simply cannot see better investments than Treasury bills. The Fed needs to drop rates. They have been foolish not to have done so already,” X CEO Elon Musk said in a Sunday post.

Musk’s comments came following a lackluster jobs report last week, which raised concerns about an economic slowdown. Meanwhile, Wall Street banks advocate for aggressive interest rate cuts amid evidence that the labor market is cooling. Citigroup economists Veronica Clark and Andrew Hollenhorst, for example, anticipate “half-point rate cuts in September and November and a quarter-point cut in December.”

JPMorgan economist Michael Feroli echoed Clark and Hollenhorst, adding that there’s “a strong case to act” before the next meeting on September 18. According to Feroli, Powell may not “want to add more noise to what has already been an event-filled summer.”

Macro Data Drives Crypto Sell-Off

Meanwhile, crypto volatility has markets bleeding, with the total market capitalization down a stark 12%. Bitcoin is down 12.35%, trading for $53,000 at the time of writing, while Ethereum lost 20%.

Some ascribe the crash to the Japanese stock market suffering its worst losses since 1987. Market analyst Zach Jones associates the crash with Japan defending its Yen currency and dumping all of its Treasury Holdings (US-owned debt).

“Japan created an everything bubble in the 80’s/90’s. The bubble got so big that in the 30-40 years since their stock market has never gotten close to the highs of the bubble. The US economy has a 122% debt to GDP ratio which is insane. Japan has doubled that. They were between a rock and a hard place, either letting their currency collapse and experience a Great Depression-esque collapse or printing money and hyperinflating their currency. They chose to print hundreds of billions of dollars per day to defend their currency. This has been an inevitability to anyone who pays attention to markets,” Jones wrote.

Read more: How To Buy Bitcoin (BTC) and Everything You Need To Know

Elsewhere, Republic ticket nominee for the November elections, Donald Trump, blames the recent financial markets crash on Kamala Harris, Joe Biden, and “inept US leadership.”

The post US Economic Calendar: Events That Could Impact Crypto Market This Week appeared first on BeInCrypto.

The decrease is part of a broader crypto sell-off that has caused panic in the market. Further, this development was also a result of macroeconomic factors affecting the crypto ecosystem.

Global Market Changes Force Bitcoin Down

According to Bloomberg, the Bank of Japan’s unexpected increase in interest rates is one reason Bitcoin and the crypto market at large are feeling the heat today. Following the development, the Japanese yen (JPY) has strengthened against the US dollar (USD).

Therefore, traders who borrowed will have to pay higher interest rates on the JPY they lent. Other assets, such as the Nasdaq futures and S&P 500, are also affected, plunging by 5% and 3%, respectively.

As a result of this development, Bitcoin’s market cap, which was $1.37 trillion on July 29, fell below $1 trillion before a recent rebound saw the value jump above the threshold again.

Following the development, different comments have spread around X, with some mentioning that the market could be heading into a bear phase. For Whale Panda, this collapse has been one of the most brutal ones in a long time.

“BTC went from $70k to $52k in a week (-26%). ETH went from $3400 to $2100 (-39%). This has been one of the most brutal performances in a long time.” The pseudonymous Bitcoin holder wrote on X.

However, some market experts were not surprised by this sell-off. Markus Thielen, Founder and CEO of 10x Research, notes that since the Bitcoin halving, there has been a noticeable lack of significant fiat-to-crypto onramps, indicating that no substantial new money has entered the market.

“The recent price declines are primarily a result of over-leveraged players reacting to market conditions. This also suggests that the rebounds observed in May and July, which were driven by increased leverage, are unlikely to occur again. Therefore, the current environment remains risky for long positions,” Thielen told BeInCrypto.

BTC Price Prediction: Down, But Not Out

Meanwhile, at press time, BTC had returned above $50,000. Specifically, the coin trades at $51,313. The bounce could be attributed to the Relative Strength Index (RSI) being in the oversold territory.

The RSI measures momentum, and also spots overbought and oversold levels. Readings above 80.00 indicate that a coin is overbought and could lead to a downward reversal. However, a rating below 30.00, as in Bitcoin’s case, indicates an oversold point, propelling the bullish reversal.

Read More: Bitcoin (BTC) Price Prediction 2024/2025/2030

However, if the rebound continues, it could retest $54,423. If bulls are unable to sustain the hike, the coin’s price may fall back to $49,032.

The post Bitcoin (BTC) Hits 5-Month Low After Falling Below $50,000 appeared first on BeInCrypto.

This marks the first time since mid-February that the market cap has fallen below the $2 trillion mark.

Fed’s Rate Stance Spurs Speculation on Emergency Cuts Amid Market Jitters

Bitcoin, the largest cryptocurrency by market capitalization, saw its price drop below the $60,000 mark, now trading at $53,399. This figure represents a 10.8% decrease in the last 24 hours. 

Similarly, Ethereum, the second-largest cryptocurrency, witnessed a significant decline of 21.2% over the same period. It is now trading at $2,306 after momentarily dipping to $2,240.

Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030

Ethereum’s sharp decline has had a ripple effect across its ecosystem. On-chain data reveals that as Ethereum’s price fell to nearly $2,100, the maximum gas fee reached 710 gwei, with the current average at 350 gwei. Crypto journalist Colin Wu noted that if Ethereum’s price dips further, it could trigger massive liquidations in DeFi protocols.

“When Ethereum fell to $1,950, $92.2 million of crypto assets in the DeFi protocol would be liquidated; when $1,790, $271 million DeFi assets would be liquidated,” Wu said.

The broader impact of today’s drop is also evident in the liquidation numbers. According to Coinglass, the liquidation amount for the last 24 hours has exceeded $800 million, with $699.45 million from long positions and $100.56 million from short positions. The largest single liquidation occurred on Huobi with a BTC-USD pairing valued at $27 million.

The fear and greed index for the crypto market has plummeted to 26, indicating a state of “fear.” This metric reflects the overall market sentiment, which has become increasingly bearish.

Many industry experts attribute the recent drop to the recent macroeconomic developments. The Bank of Japan’s unexpected hawkish stance last week, coupled with the US Federal Reserve’s cautious approach to rate cuts, has further fueled market uncertainty.

Despite market expectations, the Fed’s reluctance to cut rates in September has heightened the rush for safe investments due to weak US economic data. This gesture has intensified worries that the Fed is late in adjusting rates, necessitating aggressive monetary policy easing to prevent a recession.

Read more: How to Protect Yourself From Inflation Using Cryptocurrency

However, many crypto traders believe the current situation could prompt the Fed to make an emergency rate cut in 2024. Data from the prediction market Polymarket shows that the odds of a Fed emergency rate cut have increased by 11% in the last 24 hours.

The post Crypto Market Bloodbath: Over $800 Million Liquidated, Bitcoin Drops 10% appeared first on BeInCrypto.