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Harris startles crypto investors
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Bitcoin's 22% surge ignites talk of a possible bull market revival
Key points:
Bitcoin needs to breach $63.9k for a bullish reversal.
Current metrics indicate a potential for further price expansion ahead.
News - Bitcoin is on a downward trend on a higher timeframe chart. Daily price movements underscore increasing volatility, with a striking 22% surge in July, lifting BTC from $56,000 to $68,000, followed by a 17.5% jump from $55,000 to $64,000 in the last two weeks.
These fluctuations spark curiosity about the market's direction and raise an exciting question: could a new bull run be coming soon?
Analyst weighed in - Crypto expert Axel Adler emphasizes the potential for a bull market, highlighting the crucial need for Bitcoin to break above its 200-day moving average at $63.9k and maintain it as support. While many traders viewed the rally to $73.7k in March as the end of the current bull cycle, historical trends suggest otherwise.
In the previous cycle, Bitcoin saw an impressive 157% surge in just ten weeks leading up to the 2020 halving. Hence, the bullish trend from October 2023 to June 2024 raises questions about the possibility of a genuine bull run, especially as market dynamics shift with developments like Bitcoin spot ETF approvals.
What lies ahead? While recent price gains in Bitcoin have led to profit-taking among holders, this alone does not signal the end of the bull market. The long-term holder/short-term holder spent output profit ratio (LTH/STH SOPR) remains below the critical threshold of 7, which historically indicates market tops.
These trends suggest that current metrics still favor potential price expansion for Bitcoin in the coming months, reinforcing the outlook for a sustained bullish phase ahead.
OpenSea's NFT sales under scrutiny as users file class-action lawsuit
Key points:
OpenSea faces a class-action lawsuit for selling unregistered securities.
Plaintiffs argue NFTs qualify as investment contracts under US law.
News - Two users of OpenSea have filed a class-action lawsuit in the United States against the popular NFT marketplace.
They allege that OpenSea is selling unregistered securities contracts through its platform, raising important legal questions about the nature of NFTs and their regulation.
What’s the back story? In their 19 September lawsuit filed in a Florida federal court, Anthony Shnayderman and Itai Bronshtein claim that the NFTs they purchased on OpenSea, including items from the sought-after Bored Ape Yacht Club collection, are essentially worthless due to their alleged illegal status.
They cite a recent Wells notice from the SEC as evidence that OpenSea may be liable for facilitating the sale of unregistered securities.
This notice indicates that the SEC has conducted an investigation and could take enforcement action. The plaintiffs argue that, according to the Howey test, the NFTs acquired on OpenSea qualify as investment contracts under US securities laws, as they were purchased with the expectation of profits from the efforts of others.
What’s more to it? The plaintiffs claim that OpenSea’s assertions about moderating its marketplace - specifically regarding “real-world financial instruments” and securities - were deceptive. They argue that the platform has breached its warranty by failing to properly regulate these unregistered securities.
Furthermore, the lawsuit contends that OpenSea has unjustly profited by collecting fees and accepting funds from these transactions.
USDT hits new milestone as Tether's market cap soars to $119.14 billion
Key points:
Tether's market cap reaches $119.14 billion, reflecting 40.68% growth.
USDT's adoption rate rises from 18% to 31% in one year.
News - Over the past year, the stablecoin sector has experienced significant growth, with its total market capitalization recently soaring to an all-time high of $172.151 billion.
At the forefront of this expansion is Tether's USDT, which has shown impressive and steady growth, reaching new heights in market cap.
What’s more? Data from IntoTheBlock indicates that Tether has reached a new all-time high in market capitalization, approaching $120 billion. As of now, Tether's market cap stands at $119.14 billion, reflecting a remarkable 40.68% growth over the past year, increasing from $84.69 billion.
This achievement places Tether $83.3 billion ahead of its nearest rival, Circle's USDC, which has also experienced significant growth, currently valued at $35 billion.
The bright side - Analysis by AMBCrypto indicates a notable increase in Tether's adoption rate, rising from 18% to 31% in the past year. This growth reflects a growing preference for USDT among individual users, institutions, and retail traders, paving the way for further expansion.
Moreover, USDT has emerged as a dominant trading pair, achieving a market share of 69.22%, as reported by Defillama. This high dominance underscores its widespread utilization on exchanges, contributing to greater liquidity.
Harris aims to strengthen US tech leadership with focus on cryptocurrency
Key points:
Harris commits to AI and crypto, gaining key endorsements from industry leaders.
Trump supports crypto but trails Harris in election prediction markets.
News - Vice President Kamala Harris, the Democratic presidential nominee, has notably committed to advancing artificial intelligence and cryptocurrency.
During a speech to donors in New York City, she outlined her economic strategy focused on enhancing America’s tech landscape while prioritizing consumer and investor protection. This marks her first explicit endorsement of cryptocurrencies in her campaign.
More details - Harris also received significant endorsements from the crypto community, notably from Chris Larsen, co-founder of Ripple.
Larsen's support highlights confidence in Harris' capacity to tackle critical technology and finance issues. Additonally, Ripple’s CEO Brad Garlinghouse pointed out that while support for cryptocurrency is rising among Republicans, influential Democrats like Harris acknowledge these technologies' vital role in maintaining US leadership in the tech sector.
Will Trump stand strong against Harris? On the other hand, former President Donald Trump, the Republican candidate, is actively engaging with the crypto industry, pledging to replace SEC Chair Gary Gensler with pro-crypto regulators and proposing a stablecoin framework.
With the influence of the crypto sector growing in the 2024 elections, companies like Coinbase and Ripple have contributed over $119 million to support candidates advocating for favorable regulations.
More stories from the crypto ecosystem
Interesting facts
On 19 September, a Texas federal judge dismissed Consensys's lawsuit against the SEC, stating that “enforcement actions are not considered final agency actions.” Despite this setback, Consensys vowed to keep fighting and plans to challenge the SEC’s actions in Brooklyn to advocate for blockchain developers' rights in the US.
Despite Donald Trump's declining odds in the 2024 presidential race, analyst Mathew Sigel believes Bitcoin will stay resilient regardless of the outcome. He suggests Bitcoin could gain more under Kamala Harris's administration than under Trump.
Amid Solana’s recovery after Fed rate cuts, SkyBridge Capital’s Anthony Scaramucci believes it will lead asset tokenization, streamlining global finance by eliminating intermediaries and reducing transaction costs. He asserts that Solana's role will enable more efficient and seamless trading than traditional models.
Top 3 coins of the day
NEAR Protocol (NEAR)
Key points:
NEAR’s daily and weekly gains outperformed BTC and ETH.
RSI at 64 suggests a potential risk of trend reversal.
What you should know - NEAR Protocol (NEAR) has been gaining momentum amidst the broader market uptrend, showing a strong upward trajectory. At the time of writing, NEAR had surged by 9.49% over the past 24 hours, significantly outperforming many other cryptocurrencies that recorded modest gains of 1-2%. The weekly performance is even more impressive, with NEAR climbing 24.23%. Technical analysis reveals that NEAR’s RSI has crossed the 60 mark, indicating a strong bullish trend. However, it’s nearing overbought territory, suggesting the possibility of a price correction if buying pressure eases. A breakout above the key resistance level of $5.00 could trigger a new bullish phase for NEAR, setting the stage for potential further gains.
Sui (SUI)
Key points:
SUI registered strong weekly gains of 38.36%.
Overbought RSI signals potential bearish momentum ahead.
What you should know - SUI has recently captured attention with its remarkable rise over the past day and week. As of the latest update, SUI has experienced a 5.07% increase in the last 24 hours, trading at $1.54. This bullish momentum is supported by the MACD indicator, which shows the MACD line (blue) positioned above the signal line (orange), accompanied by green histograms that confirm the strength of the upward trend. However, the Relative Strength Index (RSI) is currently situated in overbought territory, raising concerns about a potential trend reversal. Traders should remain vigilant, as this combination of indicators suggests that while the current bullish sentiment is strong, a shift in market dynamics may be imminent.
Aave (AAVE)
Key points:
AAVE posts an impressive weekly gain of 21.49%.
Such a significant rise raises the potential for a bearish reversal.
What you should know - As excitement builds around AAVE’s potential to reach $236, the altcoin has shown a notable increase of 8.72%, trading at $170.90 at the time of this update. This bullish trend is reinforced by the Chaikin Money Flow (CMF) indicator, which is currently positive at 0.17, indicating strong buying pressure. However, a closer examination reveals that the Relative Strength Index (RSI) has entered overbought territory, raising concerns about an impending shift in momentum. While the current sentiment is optimistic, the possibility of bears gaining control and reversing the trend looms on the horizon.
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