Bitcoin, ETH to break ATH?

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Government crypto holdings on the move: Germany, U.S. spark speculation

Key points:

• German government transfers 2,700 BTC to crypto exchanges in two weeks.

• The transfers suggest potential plans to liquidate German crypto holdings.

News - Activity involving government-held cryptocurrency has intensified, with both Germany and the United States transferring significant digital assets in recent days.

Germany's Federal Criminal Police (FCP) has been particularly active, transferring a total of 2,700 Bitcoin – roughly $170 million – to multiple cryptocurrency exchanges over the past two weeks.

These transfers included 1,500 BTC on 1 July, with 400 distributed to major exchanges like Bitstamp, Coinbase, and Kraken. Another 750 BTC transfer occurred on 26 June, with a portion also directed to Bitstamp and Kraken.

Germany’s BTC holdings - The German government's current holdings sit at approximately 44,692 BTC, valued at $2.82 billion. The frequent transfers to major exchanges suggest a potential plan to liquidate these holdings.

The recent adoption of the Markets in Crypto-Assets Regulation (MiCA) by the European Union could also be a contributing factor, as it's expected to significantly impact the European crypto market.

U.S. moves ETH - Meanwhile, the U.S. government has been transferring Ether from seized funds. On 1 July, they moved 3,375 ETH – equivalent to $11.75 million – to an unknown address. This follows a previous transfer on 30 June of 11.84 BTC (around $743,000) from another seized funds address.

The U.S. government's decision to move their ETH holdings to a new wallet suggests a potential shift in how they manage seized cryptocurrency assets.

Tether launches USDT payment option for Philippines’ Social Security System

Key points:

• Filipinos can now pay SSS contributions using Tether (USDT).

• This is a first for government social security payments using cryptocurrency.

News - The Philippines is taking a step towards wider cryptocurrency adoption as Tether, the world's largest stablecoin issuer, partners with Uquid to enable Filipinos to pay their Social Security System (SSS) contributions using USDT.

The SSS is a vital social safety net for Filipino workers across formal, informal, and private sectors. It provides financial support during challenging times through its social security and employee compensation programs.

This collaboration marks a significant milestone in integrating cryptocurrency into everyday transactions, particularly for government and social services. Tether has partnered with Uquid, a Web3 infrastructure firm, to facilitate these SSS contributions using USDT on The Open Network blockchain.

What’s more? Uquid emphasizes the potential of stablecoins like USDT and cryptocurrencies in general to "simplify and enhance our daily lives." This partnership aligns with the rising trend of mainstream adoption for cryptocurrencies, with stablecoins leading the charge.

Originally meant to bridge the gap between traditional finance and crypto exchanges, stablecoins have evolved into a crucial source of liquidity in both centralized and decentralized markets. Recognizing this growth, established players like PayPal have launched their own stablecoin (PayPal USD), while Ripple plans to enter the market in early 2025.

Analysts bullish on Bitcoin and Ether in July amid positive seasonal trends

Key points:

• Bitcoin and Ethereum historically perform well in July.

• Analysts expect a potential July rebound after June's decline.

News - Cryptocurrency investors have reason to be optimistic for July, as both Bitcoin and Ethereum tend to perform well during this month historically. Analysts at QCP Capital and Coinbase highlighted this seasonal trend, with QCP Capital pointing to a median return of 9.6% for Bitcoin in July and a potential rebound after June's decline.

This positive seasonality is further bolstered by improved market liquidity. The Coinbase analysts noted a decrease in daily trading volume for Bitcoin and Ethereum in May and June, suggesting excess volatility has been cleared. This, combined with the historical July upswing, could create a supportive environment for the market.

There’s a catch though - However, a potential hurdle exists in the form of Mt. Gox creditor repayments. JPMorgan analysts anticipate these creditors, who will be receiving Bitcoin and Bitcoin Cash, to initially sell a portion of their holdings, putting downward pressure on the market in July. While this could cause a temporary dip, a recovery from August onwards remains a possibility.

Bitcoin began July on a positive note, surging from the $60,000 range to a high of $63,500 on Monday. This rally follows an increase in spot Bitcoin ETF inflows, reaching a two-week high of $73 million on Friday.

ENS derivatives market surges as open interest hits record high

Key points:

• ENS derivatives market sees open interest skyrocket to record high.

• The token’s price enjoyed significant gains within the last 24 hours.

News - The Ethereum Name Service (ENS) is experiencing a surge in activity within its derivatives market. Since its year-to-date low of $26 million on 19 May, ENS open interest has skyrocketed, reaching a record high of $153 million at the time of writing.

This surge coincides with a significant price increase for the ENS token itself. As of this writing, ENS was trading at $31.49, boasting the highest 24-hour gains among all cryptocurrencies.

Open Interest’s significant increase, as seen with ENS, suggests a growing number of traders entering new positions. This aligns with the rising token price, potentially signifying a strengthening and potentially continuing upward trend.

Further bolstering this notion was the positive funding rate for ENS across exchanges. Currently at 0.01%, this rate indicates that new market participants are primarily seeking long positions, essentially betting on a price increase.

In simpler terms, the combined surge in open interest and price, coupled with a positive funding rate, suggests a potentially bullish trend for ENS. Investors are taking notice and positioning themselves for further growth.

More stories from the crypto ecosystem

• Why RNDR’s 13.41% surge could mean $30 for AI token by August

• Pi coin holders on edge: Will the network launch a DEX before a mainnet?

• Solana ETF hype pushes SOL’s price by 18% – What’s next?

• Toncoin whales bet big as TON edges closer to its ATH

• Ethereum to ATH in 2024? Why ETH’s surge has excited investors

Did you know?

• In 2022, a decentralized autonomous organization (DAO) called PleasrDAO raised a whopping $4 million in cryptocurrency to acquire a rare copy of the first-ever printed pizza menu from 1894.

• A Swiss company called Diamond Foundry creates lab-grown diamonds and uses blockchain technology to track their origin and authenticity.

• Vancouver was the first city in the world to have a Bitcoin cash machine.

Top 3 coins of the day

Avalanche (AVAX)

Key points:

• At press time, AVX was trading at $29.71.

• It was up 21.67% over the last seven days.

What you should know - After a steep drop of over 50% between 18 March and 15 May, AVAX found support at $31.58 and attempted a recovery. However, this uptrend stalled at resistance around $41.79. A subsequent plunge brought the price down to a low of $23 within 33 days. The bulls seem to be back in control since 24 June. This momentum might carry on for a short while, but the Relative Strength Index suggests a potential rejection at the $36.83 resistance level. Cautious optimism is warranted as AVAX navigates this crucial price point.

Solana (SOL)

Key points:

• SOL’s Open Interest increased substantially over the last day.

• The coin is about to witness a point of saturation near the $150 level.

What you should know - Solana is enjoying a bullish week, fueled by speculation and hype surrounding a potential Solana ETF. Over the past seven days, SOL has surged 15.69%, trading at $148.27 at press time with an additional 4.26% daily gain. However, the bulls face a hurdle at the $160 resistance level. If breached, further upward momentum could follow. Conversely, a pullback might find support within the $115-$126 range. The Relative Strength Index currently sits at 52.35, indicating a neutral market. This suggests the uptrend might lose steam before reaching $160.

Litecoin (LTC)

Key points:

• After a month of decline, LTC started its upward move on 24 June.

• The long-term market structure skewed in favor of bears.

What you should know - Litecoin bulls showed their strength on 24 June, reversing a downtrend and propelling the price to $74.63 at press time. The next hurdle lies in the near-term resistance zone of $88.49-$88.10. However, the question of sustained momentum hangs in the balance. The Moving Average Convergence Divergence (MACD) indicator currently reflects a neutral market, with neither bulls nor bears exerting dominance. This suggests a potential pause before the next leg up. Traders might need to wait a few days for a clearer view of whether LTC can conquer resistance or face a reversal.