Biden surprises crypto market

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Joe Biden's withdrawal shakes crypto market, sparks mixed reactions

Key points:

• Bitcoin's price initially dropped by 2.8% after Biden’s withdrawal but rebounded by 3.6%.

• Some analysts believe Trump's increased odds of winning could positively impact Bitcoin, while others disagree.

News - On Sunday, President Joe Biden's surprising exit from the 2024 presidential race sent ripples through the financial markets, particularly impacting cryptocurrency values.

Following Biden's announcement, Bitcoin’s price fell by as much as 2.8% to around $65,800 but swiftly recovered, showing a 3.6% increase.

Analysts share varied opinions - Analysts are divided on the implications of Biden’s departure. eToro’s Josh Gilbert viewed the move as a potential boost for crypto assets. Thus, noting that Donald Trump’s increased chances of re-election could positively influence Bitcoin and other cryptocurrencies.

Trump’s campaign has emphasized a pro-crypto stance, with promises to end the Biden administration’s regulatory approach toward digital assets. Markus Thielen of 10x Research suggested that a Trump presidency might even see Bitcoin designated as a strategic reserve asset.

However, some experts advise caution. Pav Hundal from Swyftx highlighted that while Biden’s withdrawal might benefit Trump, the immediate effects on crypto prices could be misleading.

He pointed out that the recent price spike might be more related to speculations about future Ethereum ETFs.

ApeCoin DAO unveils plan for Bored Ape-themed hotel in Bangkok

Key points:

• The hotel would offer themed rooms, an APE bar, and a swimming pool.

• ApeCoin holders could receive one free night's stay with certain conditions.

News - ApeCoin DAO is mulling a proposal to open a hotel in Bangkok centered around the Bored Ape Yacht Club (BAYC) theme.

The brainchild of a DAO member known as DeSmart, the plan involves renovating an existing downtown hotel to incorporate BAYC-themed rooms, an APE bar, and a swimming pool.

Details about the project - DeSmart is seeking $356,000 worth of APE tokens to fund the project. Aside from the unique aesthetics, the hotel would offer benefits to ApeCoin holders, including 50 free nights (capped at one per holder) to boost ApeCoin's visibility and generate revenue for the DAO.

Half of the revenue from themed rooms would go back to the DAO for a year after their completion.

How do APE holders qualify for the benefits? To qualify for a free night, ApeCoin holders would need to be active on the ApeCoin forum, hold at least 1 APE token, and share a promotional tweet about their stay. The hotel would also accept ApeCoin payments, promoting its real-world use.

So far, the proposal has received overwhelming support from DAO members, with 90% voting in favor at the time of writing. Voting closes on 1 August 2024.

Litecoin struggles to rebound: Metrics suggest potential price correction

Key points:

• Litecoin's price recovery has been slow but hasn't caused widespread selling.

• Existing holders might sell due to recent price gains, indicated by the MVRV ratio.

News - Litecoin's price recovery remains sluggish, but surprisingly hasn't triggered major selling among investors yet. While new users continue to join the network, existing holders might see recent gains as a chance to cash out.

Despite the slow rebound, the MVRV ratio, a metric for investor profit and loss, suggests potential selling pressure. Litecoin's 30-day MVRV currently sits at 20%, historically a "danger zone" where price corrections often occur.

Any positive metric? However, a bright spot emerges from the influx of new investors. The high number of new addresses, compared to overall active addresses on the network, indicates strong network growth. This new user base could counterbalance potential selling by existing holders.

Analysts predict Litecoin's price to remain rangebound in the near future. This consolidation is due to both the opposing bullish and bearish sentiments, and Litecoin finding support at the 23.6% Fibonacci Retracement level, a key technical indicator. This support should prevent a major price drop and maintain a trading range between $79 and $71.

If the price falls below $71, it could trigger a further decline to $69. Breaching this level would invalidate the current bullish-neutral outlook and potentially lead to a drop as low as $61.

Gemini settles $36 Million fraud lawsuit with IRA Financial Trust

Key points:

• Lawsuit stemmed from alleged security failures at Gemini.

• IRA claims unsecured emails compromised a "master key" facilitating the theft.

News - Gemini, a cryptocurrency exchange, has reached a settlement with IRA Financial Trust, ending a nearly two-year legal battle over a $36 million crypto theft.

On 18 July, a judge dismissed the case with prejudice, meaning it can’t be brought back to court. The details of the settlement are confidential.

A deep dive into the lawsuit - The lawsuit stemmed from a February 2022 incident where $36 million in cryptocurrency was stolen from IRA client accounts held on Gemini's exchange. IRA blamed the theft on Gemini's inadequate security measures and lack of transparency regarding its security protocols.

Specifically, IRA alleged that Gemini downplayed the importance of a "master key" that provided access to customer accounts. The trust company claimed unencrypted emails containing the master key were exchanged between them and Gemini, allowing hackers to gain control and steal the funds.

Gemini denied any wrongdoing, stating the transactions were legitimate and authorized.

More stories from the crypto ecosystem

• XRP eyes breakout from a 6-year pattern: Is a new ATH close?

• Bitcoin eyes $100k milestone: Just one hurdle left to clear!

• POPCAT’s price peaks but volumes wane: A short-lived rally?

• Cardano breaks $0.4 resistance: Is a bullish breakout likely?

• Crypto market’s weekly winners and losers – WIF, WLD, UNI, TRX

Interesting facts

• In 2014, the Dogecoin community raised over $30,000 worth of DOGE in just two weeks to fund clean water projects in Kenya through the Doge4Water campaign. This initiative demonstrated the community's charitable spirit and willingness to use Dogecoin for social good.

• It's estimated that around 20% of all Bitcoin mined so far are lost or inaccessible. This includes Bitcoins stored on forgotten or lost wallets, Bitcoin sent to invalid addresses, and early Bitcoin mined by Satoshi Nakamoto, which have never been spent.

• Ethereum's name was chosen by its creator, Vitalik Buterin, as a reference to the "Ether," a hypothetical invisible medium that permeates the universe according to ancient natural philosophy.

Top 3 coins of the day

Dogecoin (DOGE)

Key points:

• Bullish forces have been dominating the DOGE market.

• The coin saw an upward breakout at $0.11635.

What you should know - Dogecoin has recently demonstrated a notable recovery after a significant downtrend. From a high of $0.17452 on 25 May, DOGE fell to $0.09136 by 5 July, a level not seen since 27 February. However, following this low, buying interest increased, leading to an upward breakout on 15 July. Over the past week, DOGE's value surged by 17.50%. The next critical resistance level is at $0.16000, and breaking this could push DOGE towards $0.20103. Despite this bullish momentum, technical indicators, including the RSI at 63, suggest a potential short-term correction could be imminent.

Avalanche (AVAX)

Key points:

• AVAX Futures Open Interest increased over the last three days.

• In the last 24-hours, $1.11M shorts were liquidated.

What you should know - Avalanche is currently experiencing a macro downtrend, but the daily chart reveals a strong short-term recovery with a 46.32% gain over the past 17 days. If this bullish momentum persists, AVAX could potentially rise to $50. However, if buying pressure wanes, the price might quickly drop to $26. The Awesome Oscillator has recently flashed a green signal, indicating positive momentum. Investors should watch for signs of a trend reversal or continuation to navigate potential price shifts effectively. Close attention to volume and market sentiment will be crucial in predicting whether AVAX will maintain its upward trajectory or face a short-term decline.

Ethereum (ETH)

Key points:

• At press time, ETH was trading at 3,490 with bears in charge.

• ETH’s OI-Weighted Funding Rate increased over the last day.

What you should know - Ahead of Ethereum's ETFs trading, the coin experienced a minor 0.20% dip in the last 24 hours, though it rose by 4.57% over the past week, trading at $3,490. Should the ETF attract significant inflows, ETH could potentially climb to $3,947 in the near term. However, recent low trading volumes raise concerns that this upward movement might be short-lived. The Relative Strength Index (RSI) stands at 58.35, suggesting a neutral to slightly bullish sentiment. Investors should remain cautious and monitor ETF inflows and volume trends closely to gauge the sustainability of ETH's current price action.