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ETH down, alt-season begins?
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Ethereum transaction fees hit six-month low; spark altcoin season speculation
Key points:
History revealed that cheap transaction fees on Ethereum could be a stimulant for a widespread altcoin price increase.
Most assets in the top 50 experienced minimal appreciation or a decline over the past weeks.
News - Transaction fees on the Ethereum (ETH) network fell to $1.12 on 27 April— the lowest it has been since October 2023. According to historical data, this decline could be great for ETH’s price and other altcoins.
Will altcoins start running? Oftentimes, low gas fees on the network signal a potential bottom for ETH’s price. On the other hand, an extremely high fee indicates a possible cycle top. Taking it back to October, ETH changed hands at $1,565. By 1 March, the price of the altcoin was $3,341.
With this data, there is a chance that ETH might climb higher in the coming months. While a >100% increase might not be guaranteed again, the increase could favor other altcoins with a lower market cap as this was the case the last time.
Money needs to move - In addition, the potential increase might not depend on history alone or the value of the average transaction fee. To confirm the altcoin season, at least 75% of the top 50 non-Bitcoin assets need to outperform BTC.
However, this would not happen without increased demand or capital rotation into the cryptocurrencies. Since prices have been swinging sideways, and relatively declining for some weeks, a surge in buying pressure could be on the cards.
Bitcoin ETF set to debut on Australia’s top exchange: Recent report states
Key points:
ASX, the largest stock exchange in Australia, might approve spot Bitcoin ETFs in 2024.
Firms including BetaShares, DigitalX, and VanEck are part of those seeking a go-ahead.
News - The Bitcoin (BTC) ETF gospel is moving from nation to nation, and if the latest Bloomberg report is anything to go buy, Australia would approve some spot ETFs before 2024 ends.
All hail the main drive - The stock exchange steering the wheels of approval is ASX the largest equity exchange in the country. However, it is important to note spot Bitcoin ETFs have been trading in Australia since 2022. But they are only listed on CBOE Australia with one of the ETFs owning $62 million in assets.
According to people familiar with the development, VanEck, BetaShares, and DigitalX have already filed their applications with ASX.
Potential issuers talk the talk - Lisa Wade, CEO of DigitalX, commented on the matter. Citing exchange scrutiny, and custody of assets, Wade said. “ASX is the exchange we want to list on.”
He also mentioned that Australians can allocate 10% of their investment portfolios to the ETFs when launched. As of this writing, ASX had a market cap of $2.7 trillion. If the plans go through, this value might jump depending on the rate of adoption.
XRP whales send ‘retirement letter’: What’s next for the token?
Key points:
Some XRP whales shed their holdings as the token continues to underperform.
Development activity on the network slumped.
News - Addresses holding large amounts of XRP tokens have been selling some of their assets, on-chain data showed.
For some, this development is not surprising considering the token’s underwhelming performance. However, whale holdings were not the only metric down on the Ripple side of things.
No one wants to work on the project? An assessment of other indicators revealed a decline in development activity. This means that developers overlooked the project, and were likely committing their codes to others in the ecosystem.
Furthermore, XRP’s network growth has been an eyesore, indicating that traction on the network was almost nowhere to be found. If unresolved, demand for the token might continue to dwindle, a significant price increase could be out of reach.
Holders continue to cope - In the meantime, the Market Value to Realized Value (MVRV) ratio remained in the negative region. The reading of this metric implied that many XRP holders who bought the cryptocurrency recently are holding at a loss.
At the same time, this downturn could imply that XRP could be undervalued. But expecting the price to surge in high numbers might be impossible considering that other parts of the network remained in gloomy states.
Russia wants crypto to ‘stay in lane’, reveals other plans for miners, central bank
Key points:
Russia disclosed plans to enforce a ban on cryptocurrencies in the region.
Authorities can transfer seized crypto to government wallets or, in some cases, permanently destroy the assets.
News - Russia, through the Chairman of the State Duma Committee Anatoly Aksakov, said it is working to ban crypto operations in the country. But Aksakov, in his statement, said the restriction might only be for assets that are not issued in the country.
Why is this coming up? Further, details from the chairman revealed that the initiative was to make plans ahead of unexpected events such as the geopolitical tension in the Middle East.
However, crypto miners, as well as the Central Bank’s efforts regarding digital assets would be exempted if the bill passes. Aksakov explained that crypto miners help in improving Russia’s tax revenue. Hence, it could be catastrophic to include them in the ban.
A difference in opinion - In addition, the bill is subjected to approval from the legislative arm. Sources close to the matter revealed that there was an internal debate about it. While some favored full restriction, others called for moderate regulation.
For example, the Head of the Bank of Russia Elvira Nabiullina, argued that cryptocurrencies can be useful in settling international transactions. As such, the ban should not be outright.
On the other hand, Artem Kiyarnov, the Deputy Chairman of the State Duma Committee said,
“The regulation of cryptocurrency should be prescribed in the digital code, which could spell out the conceptual apparatus, and common judicial law enforcement practice.”
More stories from the crypto ecosystem
Did you know?
Two Secret Service former agents involved in shutting down the Silk Road darknet investigation were jailed. Silk Road was the online platform used for buying and selling drugs while using cryptocurrencies as cover. Investigation showed that the agents were imprisoned due to allegations of money laundering, hacking users’ funds, and narcotics trafficking on the platform.
In 2019, 23.2 million XRP tokens were stolen from Gatehub, a network responsible for hosting wallets. In the same year, hackers carted away 10,000 ETH from South Korean exchange Upbit.
Not many people know that the popular phrase “HODL” stuck because of a spelling error in 2013. At that time, a Bitcoin investor GameKyuubi wanted to tell fellow investors on the bitcointalk forum that “I AM HOLDING". Instead, he typed it as “I AM HODLING.” Thereafter, participants in the market interpreted it to mean Hold On for Dear Life, implying the ability to keep an asset irrespective of price swings.
Top 3 coins of the day
WIF
Key points:
WIF’s momentum remained bearish but it may soon enter oversold territory.
The overhead resistance at $3.09 could be crucial to the token’s potential resurgence.
What you should know - The WIF/USD 4-hour chart showed critical support at $2.52, suggesting that bulls need to defend the region to prevent a further drawdown. However, the Relative Strength Index (RSI) indicated a negative divergence, which was proof of WIF’s underwhelming price action and bearish momentum. Should the RSI drop further, the memecoin might get oversold, and a rebound could be next. Despite the possibility, the resistance, which was positioned at $3.09 could hinder a sustained uptrend for WIF.
HNT
Key points:
HNT’s price climbed from $4.12 to $5.23 in the last 24 hours.
Sellers’ exhaustion led to the formation of a vital bullish pattern.
What you should know - HNT was among the few tokens in the top 100 that registered an increase in the last 24 hours. As of this writing, the price had jumped by 12.13% while trading at $5.23. The token formed a descending channel from the daily timeframe, indicating that sellers dictated the direction for almost two months. However, a breakout, backed by seller exhaustion triggered the upswing which also seemed to be a bullish flag formation. Furthermore, the Money Flow Index (MFI) increased, suggesting enough capital to sustain the move northward.
BNB
Key points:
BNB might need the $580.3 support to trigger a potential bounce.
Increasing downward momentum could drive the price of the coin lower.
What you should know - BNB continued to slide after its attempt at revisiting $620 was rejected at $608.9. As of this writing, the coin changed hands at $585.9. The next area of interest could be around $580.3 as it could make or mar BNB. A decline below this support could drag the price below $550. With the Awesome Oscillator's (AO) negative reading, a decrease to the aforementioned price could be an option. On the other hand, a defense at $580 could help BNB retest $600.
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