Bitcoin to $100k soon?

August 22, 2024

Reading time: 5 minutes

Bitcoin futures traders bet on September rate cut as Open Interest surges

Key points:

  • Bitcoin futures open interest surged by over $1 billion following the release of the Federal Reserve's July meeting minutes.

  • Traders are increasingly confident in predicting Bitcoin's price direction.

News - The Bitcoin futures market saw a significant surge in open interest following the release of the Federal Reserve's July meeting minutes. Investors are betting on a potential interest rate cut in September, which could increase the value of Bitcoin.

Data from Coinglass revealed a 1.26 billion dollar increase in Bitcoin futures open interest in the 12 hours after the minutes were published.

This indicates growing confidence among traders in predicting the cryptocurrency's price direction. While long positions currently hold a slight edge, the market remains relatively balanced.

The Fed's dovish tone in the minutes has reinforced expectations of a rate cut. Analysts like Markus Thielen and Sykodelic believe that this move could significantly benefit Bitcoin, as investors may shift their focus from safer assets like bonds to riskier ones like cryptocurrencies.

However, not everyone is convinced. Justin Elliot from Caldwell Investment Management has expressed skepticism about the level of aggression anticipated from the Fed in cutting rates.

WazirX cancels open orders, returns funds amid hack fallout

Key points:

  • Indian exchange WazirX canceled all open orders and returned funds to user balances.

  • The move is part of ongoing efforts to resolve issues related to INR and crypto balances on the platform.

News - Indian cryptocurrency exchange WazirX has taken a significant step in its ongoing recovery efforts following a major security breach. The platform has announced the cancellation of all open orders, returning any Indian Rupees and crypto assets held for these trades back to users' accounts.

In a brief statement on social media, WazirX stated that this move is part of its broader strategy to address the ongoing issues related to INR and crypto balances on the platform.

What’s more? The exchange has been grappling with the aftermath of a $230 million exploit that occurred on 18 July, leading to a temporary halt in trading activities.

The recovery process has been marked by challenges and controversies, with WazirX facing criticism for its proposed "socialized loss strategy."

While evidence pointed towards North Korea's notorious Lazarus Group as the likely culprit behind the attack, the chances of recovering stolen crypto assets are typically slim.

Tether expands Stablecoin portfolio with new UAE Dirham-pegged token

Key points:

  • Tether is launching a new stablecoin pegged to the UAE Dirham.

  • The token will be backed by liquid reserves based in the UAE.

News - Tether, the leading stablecoin issuer, has announced plans to launch a new stablecoin pegged to the United Arab Emirates Dirham (AED).

The token, backed by liquid reserves based in the UAE, aims to provide stability and liquidity for users in the region.

This move aligns with Tether's strategy to expand its stablecoin portfolio and cater to diverse market needs. The company has already established a strong presence with its USDT stablecoin, which generated $93.75 million in revenue last year.

Tether's partnership with Phoenix Group PLC, a UAE-based technology conglomerate, and Green Acorn Investments Ltd. will facilitate the launch of the AED-pegged stablecoin. The new token will join Tether's existing stablecoin offerings, including USDT, EURT, CNHT, MXNT, XAUT, and aUSDT.

The introduction of a UAE Dirham-pegged stablecoin is expected to have a positive impact on the broader cryptocurrency ecosystem. It could attract more regional investors and businesses to the crypto market, increasing liquidity and potentially driving the price of Bitcoin.

TRON founder Justin Sun considers fee reduction to ride SunPump craze

Key points:

  • SunPump, a platform for creating new tokens, has boosted TRON-based meme coins.

  • Lower fees could increase daily transactions on TRON and expand its market share.

News - Justin Sun, founder of the TRON blockchain, is exploring the possibility of lowering transaction fees on the network. This move comes amidst the ongoing "SunPump craze," a phenomenon driven by meme coins built on TRON.

SunPump, a platform designed for generating new tokens, has ignited a wave of market excitement. It has propelled TRON-based meme coins into the spotlight, potentially challenging Solana's dominance in this space.

How fee reduction will help? Sun believes reducing fees could significantly increase daily transactions on the TRON blockchain, reaching over 20 million within a three-month timeframe.

This strategy aims to expand TRON's market share and generate higher profits for the network. Additionally, Sun is considering raising the energy cap, a move intended to incentivize users to stake TRX, TRON's native token.

Looking ahead, Sun projects the TRON blockchain to generate revenue between $3 billion and $4 billion over the next year. He proposes allocating $1 billion towards burning TRON tokens, while the remaining $2 billion would be used to subsidize transactions and reward users who stake TRX.

Did you know?

  • El Salvador in 2021 became the first country to adopt Bitcoin as legal tender, while others like the Marshall Islands are exploring similar moves.

  • Play-to-earn games are emerging, where players can earn cryptocurrency through gameplay and virtual property ownership. Axie Infinity is a prime example, where some players even quit their jobs to play full-time.

  • Many crypto enthusiasts are passionate about giving back. The SENS Research Foundation, for example, uses cryptocurrency donations to fund research into aging and longevity.

Top 3 coins of the day

Binance Coin (BNB)

Key points:

  • BNB was trading at $581, at the time of writing.

  • It increased by 10.80% over the last 7-days.

What you should know - BNB's daily chart shows a recent bullish breakout with the price currently around $581.10. The support zone around $440 proved strong, as indicated by multiple rebounds from this level. The Moving Average Convergence Divergence (MACD) reflects a positive momentum shift with the histogram increasing, suggesting growing bullish sentiment. The volume, slightly elevated during the breakout, supports the validity of this upward movement. The recent breakout at around $545, if sustained, could signal the start of a new upward trend. However, traders should watch for potential resistance near the $600 mark, which could pose a challenge for further gains.

Avalanche (AVAX)

Key points:

  • AVAX bulls have been in charge for the past few days.

  • Buyers’ dominance has outweighed sellers’ strength.

What you should know - AVAX showed a recent rebound from a significant low, with the price currently at $23.65. This recovery follows a downtrend that saw prices compressing within a descending channel, marked by the yellow trendlines. Recently, AVAX has breached the upper boundary of this channel, indicating a potential reversal or bullish correction. The price has surpassed the 50-day moving average (yellow line), suggesting short-term bullish sentiment. The RSI at 63.84 supports this view, showing momentum that is neither overbought nor oversold. The immediate challenge for AVAX is the resistance zone around $28-$32. If AVAX can sustain its gains and push through this zone, it could indicate a stronger bullish phase.

Uniswap (UNI)

Key points:

  • UNI was trading at $6.94, at press time.

  • It was up by around 9.47% over the last week.

What you should know - Currently priced at $6.945, UNI has recently shown some signs of recovery with a slight uptick in price. The price remains below the key Simple Moving Averages (SMAs) - 50-day, 100-day, and 200-day, indicating a bearish sentiment over the medium to long term. The recent price action has approached the 50-day SMA, which could act as a short-term resistance. The Awesome Oscillator suggests decreasing negative momentum as the bars become less negative. This could indicate a possible slowing in the bearish pressure. Traders should watch for a potential breakout above the 50-day SMA for confirmation of a short-term bullish reversal.

How was today's newsletter?

Login or Subscribe to participate in polls.