Markets
Bitcoin creeps up but is still below $70,000
Key points
- The price of bitcoin fell last week ahead of news about inflation and the Federal Reserve, but it hasn’t rebounded as much as other risky assets.
- US presidential candidates Donald Trump and Joe Biden continue to demonstrate that cryptocurrencies are a major election issue.
- Terraform Labs has agreed to a $4.5 billion settlement with the SEC.
- Binance founder Changepeng Zhao was found to be one of the 25 richest people in the world.
- This week, crypto analysts are closely watching the price of bitcoin to see if the recent volatility is over.
The past week has been a wild ride for the price of bitcoin (Bitcoin).
The price of bitcoin it fell below $67,000 on Tuesday ahead of May inflation data and the Federal Reserve meeting. Bitcoin it regained ground on Wednesday before falling again on Friday. While other risky assets, such as stocks, have recovered thanks to colder-than-expected inflation data, bitcoin has failed to recoup its losses.
Despite Bitcoin’s performance last week, cryptocurrencies are going through an important moment on the US presidential election campaign trail. Presumptive Republican nominee Donald Trump met with bitcoin miners last week, and a leaked email showed that members of President Joe Biden’s administration will meet with members of the crypto community.
Elsewhere, Terraform Labs has agreed to a massive $4.5 billion deal with US Securities and Exchange Commission (SEC) for what concern TerraUSD stablecoin disaster from 2022and an investigative report concluded it Binance founder and former CEO Changpeng “CZ” Zhao is one of the 25 richest people in the world.
The growth of cryptocurrencies is an issue for the US presidential elections
Former President Donald Trump has changed his stance on cryptocurrencies during the current election cycle, now actively courting the crypto community to gain an advantage over rivals Joe Biden and Robert F. Kennedy Jr.
After meeting with bitcoin miners at his Mar-a-Lago estate, Trump urged cryptocurrency enthusiasts on his Truth Social platform to “vote for Trump,” positioning himself as a defender against what he calls “Biden’s hatred of Bitcoin”.
This new approach follows Trump’s strong criticism of cryptocurrencies earlier during his presidency, when he labeled them as highly volatile and unregulated assets that facilitate illegal activities. Now, however, Trump’s campaign has announced plans to accept cryptocurrency donations, with the aim of mobilizing a “cryptocurrency army” to ensure his election victory.
Across the street, the Biden administration’s approach to Bitcoin and cryptocurrencies has been criticized, especially given the recent veto on legislation to support the custody of cryptocurrencies by financial institutions and proposed taxes about Bitcoin mining. According to a report from The Block, Biden is also expected to start accepting campaign contributions via cryptocurrencies.
Biden supporters will participate in a roundtable on Bitcoin and blockchain next month, Bitcoin Magazine reports.
Terraform Labs agrees to $4.5 billion settlement with SEC
On Wednesday, a court document revealed that Terraform Labs agreed to a settlement of nearly $4.5 billion to resolve an SEC lawsuit. The filing sought court approval for the deal, which would end a legal battle over the company’s role in TerraUSD’s dramatic bankruptcy in May 2022, which led to an estimated $40 billion loss for investors.
The settlement includes approximately $3.5 billion in restitution, more than $460 million in prejudicial interest and $420 million in civil penalties. Former CEO Do Kwon will personally contribute more than $200 million to Terraform’s bankruptcy estate and will be barred from serving as an officer or director of a public company.
This settlement, originally reached prior to the May 29 hearing, aims to impose substantial financial remedies and facilitate a rapid recovery for investors. The SEC emphasized that these sanctions are intended to discourage future fraudulent activity in the cryptocurrency market. Terraforming laboratories declared bankruptcy earlier this year, shortly before her SEC trial, where she was found guilty of defrauding investors.
Binance founder Changpeng Zhao is estimated to be the 24th richest person in the world
Since his imprisonment, Binance founder Changpeng “CZ” Zhao has seen a significant increase in his net worth.
Forbes now estimates Zhao’s wealth at $61 billion, making him the 24th richest person in the world.
This increase comes from its 90% stake in Binance, valued at $33 billion. Zhao stepped down as CEO of the company in November 2023 following a plea bargain with the United States Department of Justice. Despite the company’s legal challenges and a $4.3 billion fine, Zhao’s personal financial impact was limited to a $50 million fine. Since then, Binance has continued to grow, with its market share rising to 42% from 38% before Zhao’s departure.
A notable boost to Zhao’s wealth comes from his holdings Binance Coin (BNB). Forbes estimates it owns approximately 94 million tokens, or 64% of all BNB tokens. Despite Binance’s legal troubles, BNB grew 100% in 2024, reaching a market capitalization of $110 billion.
Binance’s initial coin offering in 2017 was undersubscribed, and forensic analysis indicates that Zhao and Binance retained a significant portion of the tokens unsold. Currently, BNB is traded heavily on Binance’s platform, and the token’s performance has continued to add billions to Zhao’s net worth, even as he serves his sentence.
What to expect from the markets this week
All eyes are on the price of bitcoin this week, as digital asset investment products, which include US-based bitcoin ETFs, saw more than $600 million in outflows during bitcoin’s price decline last week, according to CoinShares.
Despite the price decline, MicroStrategy’s infamous bitcoin bulls (MSTR) announced another $500 million convertible note offering to buy more bitcoin before upgrading the offering to $700 million later in the week.
Although bitcoin has traded in a relatively tight range this month, the crypto asset has been outperformed by several bitcoin mining stocks, as noted by a report from JPMorgan. This is thought to be an answer to Core Scientific’s question (CORZ) deal with CoreWeave related to artificial intelligence.
SEC approval of spot ether ETFs also now appears to be a question of “when” rather than “if.” SEC Chairman Gary Gensler indicated at a Senate hearing last week that the issue will be resolved over the summer. Furthermore, Bloomberg analyst Eric Balchunas gives a 50% chance that approval will take place by July 2. Prediction market Polymarket estimates the odds of a spot ether ETF trading by July 4 at 75%.
Bitcoin AND Etherealalong with the rest of the top 10 cryptocurrencies by market cap, appear to be in hibernation on Thursday morning.
At the time of writing, the Bitcoin Price is still below $65,000 and 2.2% lower than it was this time yesterday, according to CoinGecko data. Things are worse for the Ethereum Pricewhich is 3.7% lower than 24 hours ago at $3,185.22. The drop in ETH’s price is identical to that of Lido Staked Ethereum (stETH), a liquid staking token for Ethereum.
In recent days, falling prices have led to the liquidation of derivative contracts worth $225 million, according to Coin glassAnd about half of that, about $100 million, was liquidated in the last 12 hours.
When a trader is liquidated, it means that their position in the market has been forcibly closed by an exchange or brokerage due to a margin call or insufficient collateral. Margin is especially important when it comes to leveraged positions, which allow traders to control a multiple of their deposit, such as opening a $10,000 position with only $1,000 in their account.
Now that Bitcoin has been in the red for three days in a row, there is a chance that the world’s oldest and largest cryptocurrency could sink even further, BRN analyst Valentin Fournier said in a note shared with Decrypt.
“Bitcoin has closed in the red for three days in a row, with one-way trading showing limited resistance from bulls. Ethereum had a slightly positive Monday with strong resistance from bears who have won the last two days,” he wrote. “This momentum could take BTC to the $62,500 resistance or even the $58,000 territories.”
Looking ahead, Fournier said BRN’s strategy will be to “reduce exposure to Bitcoin and Ethereum and find a better entry point after the dip.”
This is despite Federal Reserve Chairman Jerome Powell’s comments yesterday on interest rates being widely regarded as accommodating and indicative of FOMC rate cuts in September.
Singapore-based cryptocurrency trading firm QCP Capital said the rally in stocks, which sent the S&P 500 up 1.6% from Wednesday’s close, was not felt in cryptocurrency markets.
“Cryptocurrencies have seen a broad sell-off overnight and into this morning,” the firm wrote in a trading note. “The market remains poised as traders pay close attention to daily ETH ETF outflows and further supply pressure from Mt Gox and the US government.”
Meanwhile, the other top-ranking coins are showing mixed performance.
Solana (SOL) is down 7.2% since yesterday to $169.13. Things are even worse for its most popular meme coins. In the past 24 hours, the most popular meme coins Dogwifhat (WIF) are down 12% and BONK (BONK) is down 9%, according to CoinGecko data.
Their dog-themed competitor, Ethereum OG Dogecoin (DOGE), the only meme coin in Coingecko’s top 10, is down nearly 4% since yesterday and is currently trading at $0.1205.
XRP (XRP) dropped to $0.608, which is 7% lower than it was at this time yesterday.
Binance’s BNB Coin (BNB) has kept pace with BTC and is currently trading at $571, down 2.4% from yesterday. Toncoin (TON), the native token of The Open Network, is down just 0.4% over the past day.
This leaves the stablecoins USDC (USDC) and Tether (USDT), both of which are stable as they maintain their 1:1 ratio with the US dollar.
The Securities and Exchange Commission (SEC) will hold another closed-door meeting with Ripple on Thursday, as the market hopes for a possible resolution to the legal battle between the two entities.
However, the cryptocurrency market remains relatively bearish, with the price and trading volume of XRP down in the last 24 hours.
Ripple holders take no risk
At press time, XRP is trading at $0.60. The altcoin’s price has dropped 6% over the past 24 hours. During that time, trading volume was $27 million, down 27%.
The SEC met before with the digital payment company on July 25. While the outcome of that meeting remains unknown, the Sunshine Act Notice for Thursday’s meeting includes one additional topic of discussion from the July 25 closed meeting: the instituting and resolving injunctive relief. That has market participants speculating whether a settlement is imminent.
In an exclusive interview with BeinCrypto, Ryan Lee, Lead Analyst at Bitget Research, noted that:
“This meeting will discuss possible resolution options for the Ripple Lawsuit. The founder of Ripple Labs said that a legal settlement could be announced soon. If an official settlement plan is released, it could positively impact XRP’s price movement.”
However, an assessment of XRP’s price movements on a 4-hour chart shows a spike in bearish bias as the market awaits the outcome of this crucial meeting. Its Moving Average Convergence/Divergence (MACD) indicator readings show that its MACD line (blue) has crossed below its signal line (orange).
XRP 4 Hours Analysis. Source: Trading View
Traders use this indicator to gauge price trends, momentum, and potential buying and selling opportunities in the market. When an asset’s MACD is set this way, it is a bearish signal that suggests selling activity is outweighing buying momentum.
Additionally, the altcoin relative strength index (RSI), at 46.08, is currently below its neutral 50 line and in a downtrend. This indicator measures overbought and oversold market conditions for an asset.
To know more: How to Buy XRP and Everything You Need to Know
XRP 4 Hours Analysis. Source: Trading View
At 43.83 at the time of writing, XRP’s RSI suggests a growing preference among the market participants for tokin distribution.
XRP Price Prediction: Derivatives Traders Exit Market
The XRP derivatives market has also seen a decline in trading activity over the past 24 hours. According to Coinglass, derivatives trading volume has plummeted 18% and open interest has dropped 10% during that period.
Open interest refers to the total number of outstanding derivative contracts, such as options or futurethat have not yet been resolved. When it drops, traders close their positions without opening new ones. This is a bearish signal that reflects a lack of confidence in any potential positive price movement.
According to Lee, the outcome of the meeting with the SEC “would have a significant impact on the price movement of the token.” If the outcome is favorable, the price of the token could rise towards $0.75 in August.
To know more: Ripple (XRP) Price Prediction 2024/2025/2030
XRP 4 Hours Analysis. Source: Trading View
On the other hand, if no favorable resolutions are reached, the price could plummet to $0.50.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto strives to provide accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our Terms and conditions, Privacy PolicyAND Disclaimers They have been updated.
Bitcoin is now the dominant force in the cryptocurrency market, surpassing 53% of the total cryptocurrency market, a stronger share than it has been in the past three years.
Bitcoin’s market cap now stands at $1.27 trillion, second according to CoinGecko data. In contrast, the total cryptocurrency market cap is $2.43 trillion, with Ethereum occupying 15.9% of the market, worth $389 billion.
Bitcoin’s rise to dominance this year is unusual, as altcoins typically do better than Bitcoin in a bull market. While meme coins made a strong comeback during Bitcoin’s rally to all-time highs earlier this year, the so-called “wealth effect” It has not been appreciated as much by mid-range coins, such as Ethereum and Cardano.
“ETF flows fundamentally alter market dynamics,” he wrote Meltem Demirors, former chief strategy officer at CoinShares, tweeted Wednesday: “BTC gains no longer translate to alts and the longer tail of crypto.”
Bitcoin’s takeover has continued even as the market cap of Tether (USDT) continues to grow, the world’s largest stablecoin and the third-largest cryptocurrency after BTC and ETH. Stablecoins are backed by fiat currencies and are excluded from some measures of Bitcoin dominance due to fundamentally different value models.
The surge continued to pace even after the launch of Ethereum spot ETFs last week, which ironically culminated in a news sell-off event, and net outflows from new investment products since they were launched. This went against the predictions of K33 Search so far, which predicted that ETFs would catalyze ETH’s growth over the next five months.
Despite the poorer performance of the alts, there is reason to believe that they are ready to bounce back very soon.
CryptoQuant CEO Ki Young Ju said Tuesday that whales are “preparing for the next altcoin rally,” as limit buy orders for assets other than BTC and ETH are on the rise.
The executive shared a chart showing how the “cumulative difference between purchase volume and sales volume” has increased in recent months.
“The indicator measures the difference between buy and sell orders over a year,” CryptoQuant told Decrypt. A buy/sell order is a pre-set request to buy or sell a cryptocurrency if it hits a certain price level, which creates resistance and support levels.
“If the trend is up, it means that more people are placing buy orders, showing strong interest in buying,” CryptoQuant said.
By Ryan-Ozawa.
After Monday’s crash, in which BTC fell by several thousand dollars, the scenario has repeated itself once again in the last 12 hours, with the asset falling to a 2-week low of $63,300.
Alt coins followed suit, with most of the market in the red today. SOL and XRP lead the way from the higher cap alts.
BTC Drops To $63.3K
After a violent Thursday last week, when BTC crashed to $63,400, the asset went on the offensive over the weekend and surged above $69,000 on Saturday, as the community prepared for Donald Trump’s appearance at the 2024 Bitcoin Conference in Nashville.
His speech was followed by more volatility before the cryptocurrency settled around $67,500 on Sunday. Monday started off rather optimistically for the bulls as bitcoin hit a 7-week high of $70,000.
However, he failed to maintain his run and conquer that level decisively. On the contrary, he was rejected bad and dropped to $66,400 by the end of Monday. Tuesday and Wednesday were less eventful as BTC remained still around $66,500.
The last 12 hours or so have brought another crash. Bears have pushed the leading digital asset down hard, which has fallen to a 2-week low of $63,300 (on Bitstamp), leaving over $200 million in liquidations.
Despite the current rebound to $64,500, BTC’s market cap has fallen to $1.270 trillion, but its dominance over alts is recovering and has reached 52.6%.
Bitcoin/Price/Chart 01.08.2024. Source: TradingView
The Alts are back in red
Ripple’s native token has been at the forefront of the market challenge in recent days as pumped up to a multi-month high of over $0.66. However, its run was also interrupted and XPR fell by more than 6% in the last day to $0.6.
The other big loser among the larger-cap alternatives is SOL, which has lost 8% of its value and is now struggling to get below $170.
The rest of this altcoin cohort is also in the red, with ETH, DOGE, BNB, AVAX, ADA, SHIB, and LINK all seeing drops between 2 and 5%.
The total cryptocurrency market cap lost another $70 billion overnight, falling below $2.4 trillion today on CG.
Cryptocurrency Market Overview. Source: QuantifyCrypto SPECIAL OFFER (sponsored)
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