Bitcoin falls, confidence rises

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BlackRock's Bitcoin ETF records massive inflows amid price dip

Key points:

  • The overall US spot Bitcoin ETF market saw net inflows of $202.6 million.

  • Ether ETFs, however, experienced net outflows.

News - BlackRock's iShares Bitcoin Trust ETF (IBIT) experienced a surge in investor interest on 26 August, recording its largest daily net inflow in 35 days.

Buyers appear to have capitalized on a slight dip in Bitcoin's price below $64,000 following a strong weekly rally.

Details about the inflow - IBIT attracted $224.1 million in new funds, surpassing the $526.7 million inflow recorded on 22 July. This coincided with Bitcoin reaching a daily high of $67,534.

The broader Bitcoin ETF market also saw significant inflows, totaling $202.6 million. However, several other ETFs, including those from Bitwise, Fidelity, and VanEck, experienced net outflows.

What about ETH ETFs? Ether ETFs recorded net outflows of $13.2 million. The price of Ether declined by 2.22% over the past 24 hours to $2,686.

The recent inflows into Bitcoin ETFs can be attributed to growing optimism about a potential interest rate cut by the US Federal Reserve in September. This expectation was fueled by comments from Federal Reserve Chair Jerome Powell during a speech on 21 August. As investors anticipate a more favorable economic environment, they are increasingly turning to Bitcoin and other cryptocurrencies.

Ethereum's Layer-2 network Base registers 1M daily active addresses

Key points:

  • The launch of the "basenames" service has been a key factor in the network's expansion.

  • Trading volume on Base has surged, indicating growing interest from traders and investors.

News - Coinbase's layer-2 network, Base, has experienced a meteoric rise in popularity, surpassing the million mark in daily active addresses.

This significant milestone comes just weeks after the launch of the "basenames" service, which allows users to acquire human-readable addresses tied to their Base wallets.

Base outpaces its competitors - The surge in user activity has propelled Base to the forefront of Ethereum's layer-2 ecosystem, outpacing competitors like Arbitrum, Linea, and Mantle in terms of daily active users.

This growth can be attributed in part to the convenience and appeal of basenames, which simplify interactions and foster a more user-friendly experience.

Beyond the increase in daily active addresses, Base has also witnessed a surge in financial activity. The total trading volume on the network has skyrocketed in recent months, indicating growing interest from traders and investors. This growth underscores Base's potential to become a major player in the decentralized finance (DeFi) landscape.

Celsius bankruptcy proceedings near completion, majority of creditors paid

Key points:

  • Celsius has repaid a substantial portion of its debts to eligible creditors.

  • Many creditors with smaller claims may face difficulties in claiming their funds.

News - Celsius, the bankrupt cryptocurrency lender, has made significant progress in its bankruptcy proceedings by repaying a substantial portion of its debts.

According to a recent court filing, the company has distributed approximately $2.53 billion to 251,000 creditors.

More details - This payment represents about 84% of the total assets owed by Celsius, which amounts to $3 billion. While the Celsius repayment is a positive development, it's not without its challenges.

Many creditors, especially those with smaller claims, are hesitant to actively pursue their funds due to the administrative hurdles involved.

According to the filing, over 64,000 creditors have less than $100 worth of crypto, and 41,000 have claims between $100 and $1,000.

To address this issue, the bankruptcy administrator is implementing a strategy to retry distributions every two weeks and is offering flexible claim options through platforms like Coinbase and PayPal.

New Zealand moves to regulate crypto market with OECD framework

Key points:

  • New Zealand plans to adopt the OECD's Crypto-Asset Reporting Framework.

  • The Inland Revenue would share information with other tax authorities.

News - The New Zealand government has taken a significant step towards enhancing tax transparency in the cryptocurrency market. Minister of Revenue, Simon Watts, has introduced a new bill that would implement the Organization for Economic Co-operation and Development's Crypto-Asset Reporting Framework (CARF) and amend the Common Reporting Standard (CRS).

Under the proposed legislation, crypto-asset service providers (CASPs) based in New Zealand will be required to collect information on users who engage in cryptocurrency transactions through their platforms.

What’s more? This data will then be reported to the Inland Revenue Department. The collected information will be shared with tax authorities around the globe, ensuring that profits derived from crypto trading are properly taxed.

The government has emphasized the need for greater visibility into cryptocurrency transactions to prevent tax evasion.

The proposed bill is expected to come into effect on 1 April 2026, with CASPs required to report user information to the Inland Revenue by June 30, 2027. The sharing of this information with international tax authorities will be completed by September 30, 2027.

Interesting facts

  • As per CoinATMRadar data, there are 34,479 crypto ATMs across 77 countries, managed by 603 operators. The United States dominates with 88% or 30,380 of these ATMs, while Canada (2,253) and El Salvador (205) follow as the second and third, respectively.

  • As of 2021, there were over 300 million crypto users globally. Cryptocurrency statistics from that year indicated Asia had the largest user base with 160 million, followed by Europe (38 million), Africa (32 million), and North America (28 million).

  • The smallest unit of Bitcoin is called a "satoshi," which is equal to 0.00000001 BTC. This is named after Satoshi Nakamoto, the pseudonymous creator of Bitcoin.

Top 3 coins of the day

Solana (SOL)

Key points:

  • Solana was trading at $153, at the time of writing.

  • It was up by 5.27% over the past week.

What you should know - Solana (SOL) is currently trading at $153.57, showing signs of a potential breakout from a consolidation phase. The chart indicates that SOL has maintained strong support around the $140 level, which has held firm despite recent market fluctuations. The entry point around this support level suggests that traders are positioning for a bullish move. The Bollinger Bands show that SOL is nearing the upper band, indicating potential upward momentum. The Awesome Oscillator is positive, highlighting a shift in buying pressure. A key resistance level can be identified around $180, which aligns with the take-profit target. If SOL breaks through this resistance, it could confirm the bullish trend. However, a stop-loss around $130 is prudent in case of a bearish reversal.

Near Protocol (NEAR)

Key points:

  • At press time, NEAR was trading at a 14.25% premium.

  • Technical indicators hinted at a bearish bias.

What you should know - Near Protocol (NEAR) is currently trading at $4.688, showing signs of consolidation after a recent rally. The chart highlights a significant bounce from the $3.00 level, where NEAR saw a recovery of approximately 34.03%, moving toward the current resistance level at around $5.00. The Bollinger Bands suggest that NEAR is trading near the upper band, indicating potential overbought conditions. The Awesome Oscillator remains positive, reflecting continued buying pressure. However, the Relative Strength Index is nearing overbought territory, suggesting caution. If NEAR fails to break the $5.00 resistance, a pullback towards the $4.00 support level could occur.

Aptos (APT)

Key points:

  • APT was changing hands at $7.10, at the time of publication.

  • It was up by around 15.92% over the last seven days.

What you should know - Aptos is currently trading at $7.19, showing signs of a rebound after bouncing from a key support zone around $6.00. The chart highlights a well-defined resistance zone between $9.00 and $10.00, which has historically capped upward movements. The Chaikin Money Flow (CMF) indicator is in positive territory, suggesting that buying pressure is increasing. This could be a sign of potential upward momentum as APT approaches the resistance zone. If APT manages to break above the $10.00 resistance, it could pave the way for a stronger rally. Conversely, failure to do so might result in continued consolidation or a downward move.

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