NFT market surprises investors

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Ether options market heats up as investors hedge before ETF launch

Key points:

• Implied volatility in the ether options market is rising.

• Investors are focusing on short-term contracts, suggesting concerns about price movements in the immediate future.

News - With the launch of U.S. ether ETFs just around the corner, uncertainty is brewing among investors. This is reflected in the options market, where activity has surged as investors seek to hedge their positions against potential price swings.

Derivatives’ market stats - Data shows a rise in implied volatility (IV), a gauge of market expectations for future price movements. This suggests increased demand for options contracts, which offer protection against price fluctuations.

Investors are particularly interested in short-term contracts expiring in mid-July, indicating a focus on near-term price movements.

Analysts believe this hedging activity stems from a combination of factors. Firstly, there's optimism surrounding the upcoming ether ETFs, predicted to attract significant investment and potentially boost ether's value relative to Bitcoin. Secondly, memories of the "sell-the-fact" dip that followed the launch of Bitcoin ETFs earlier this year are prompting caution.

However, analysts also point out that the current market sentiment for ether is more measured compared to the exuberance surrounding Bitcoin in January. This suggests a lower likelihood of a similar post-launch price correction for ether.

BlackRock CEO Larry Fink sees Bitcoin as a hedge against global turmoil

Key points:

• BlackRock CEO Larry Fink sees BTC as a hedge for those fearing a negative global outlook.

• Fink's comments came after a recent surge in Bitcoin’s price.

News - BlackRock CEO Larry Fink offered his strongest endorsement of Bitcoin yet, calling it a "legitimate financial instrument" but primarily suited for investors with a gloomy global outlook.

These comments come after a recent assassination attempt on Donald Trump which sent Bitcoin prices soaring.

Fink sees Bitcoin as a hedge against a negative global outlook, while personally remaining optimistic about the world. BlackRock, the world's largest investment firm, has been actively embracing crypto in recent months.

What’s more? Last year, BlackRock's application for a spot Bitcoin ETF with the SEC is believed to have significantly propelled the market for such products. The firm's leadership in launching these ETFs has contributed to BlackRock's record-breaking asset management value.

BlackRock is also expected to be among the first U.S. issuers of Ethereum ETFs and has already launched a successful Ethereum-based tokenized asset fund.

In an odd turn of events, the individual identified as the Trump rally shooter was once featured in a BlackRock advertisement.

Scammer returns $9.3M in stolen crypto, leaving community baffled

Key points:

• A scammer returned $9.3 million in stolen crypto to the victim.

• The initial phishing scam in September 2023 resulted in the theft of $24.2 million worth of crypto assets.

News - The cryptocurrency community is reeling after a scammer unexpectedly returned nearly $9.3 million worth of stolen digital assets to their victim. This incident has sparked widespread speculation about the motives behind this rare act of restitution.

The backstory - In September 2023, a phishing scam resulted in the theft of $24.2 million in crypto assets, including Lido Staked Ether (stETH) and Rocket Pool (rETH) tokens. This incident, initially flagged by crypto anti-scam analyst ScamSniffer, left the victim with significant losses.

However, in a surprising turn of events, ScamSniffer reported on 13 July that the scammer had returned a portion of the stolen funds – $9.27 million in DAI stablecoins – to the victim. This unexpected repayment represents roughly 38% of the initial loss.

The reasons behind this partial return remain a mystery. Theories within the crypto community range from a guilty conscience on the scammer's part to a fear of getting caught by authorities.

While this incident offers a glimmer of hope for victims of such scams, it's important to remember that stolen assets are rarely recovered.

NFT market rebounds with increased sales volume despite fewer participants

Key points:

• NFT sales volume jumps 7.7% to over $109 million despite fewer buyers and sellers.

• Trading activity surges by 21%, suggesting remaining participants are more actively engaged.

News - The NFT market has shown signs of life over the past week, with a significant jump in sales volume exceeding $109 million. This represents a 7.7% increase, despite a surprising decline in the number of both buyers and sellers.

Data from Crypto Slam reveals a 68% drop in NFT buyers and a 67.8% decrease in sellers. However, this is offset by a surge in trading activity, with transactions skyrocketing by nearly 21% to reach 2.4 million. This suggests that the remaining participants are more actively trading NFTs, possibly seeking opportunities in the current market conditions.

Which blockchain is dominating the NFT space?

• Ethereum remains the dominant player, contributing over $36.5 million in sales volume. However, it also saw a decline of over 16% compared to the previous week.

• Solana is emerging as a strong contender, recording the second-highest sales volume at $27 million. This represents a significant increase of almost 38%, indicating growing interest and activity on Solana's NFT platform.

• Polygon is another rising star, with its sales volume surging over 70% to reach $23.2 million in the past week. This marks a substantial boost in trading activity on the network.

• Bitcoin contributes the fourth-largest volume with $15.9 million, although it experienced a slight decline of over 3%.

More stories from the crypto ecosystem

• Crypto week ahead: Why BTC, ETH are poised for strong gains

• Solana can hit $1000 during its next bull run, but on some conditions

• Bitcoin dominance shows that altcoin season is still far away: Here’s why

• SHIB price prediction: After outdoing PEPE, will Shiba Inu surge another 15%?

• Waiting for Dogecoin to surge to its ATH? Latest analysis shows…

Interesting facts

• In 2010, a bug in the Bitcoin code accidentally created 184 billion Bitcoin. This was thankfully caught and fixed within hours, but it highlights the potential for critical errors in the early days of cryptocurrencies.

• In 2014, the internet went wild over a video of a New York City rat dragging a whole slice of pizza down the subway stairs. Inspired by this viral sensation, a programmer created a cryptocurrency called "Trashcoin" (TRASH). While initially intended as a joke, Trashcoin gained some value and even got listed on a few cryptocurrency exchanges.

• Surprisingly, the concept of cryptocurrencies can be traced back to the 1980s. The idea of untraceable peer-to-peer digital money was first proposed by an American IT named David Chaum in 1983 — long before the creation of Bitcoin.

Top 3 coins of the day

Pepe (PEPE)

Key points:

• Pepe whales’ accumulation has increased over the last week.

• At press time, nearly 80% of PEPE investors were in profit.

What you should know - Pepe is currently experiencing mixed signals, caught between rising bullish sentiment and indicators of short-term market fatigue. On the positive side, the Long/Short Ratio suggests a rise in bullish bets, with more traders expecting the price to go up. This aligns with the impressive 221% price increase since Pepe's April low of $0.00000393. However, the technical picture is not without its concerns. The price is currently 32% off its late-May high of $0.00001725, indicating a pullback from recent gains. Additionally, the RSI sits near 58, which is considered neutral territory. This suggests that the market might be experiencing some short-term exhaustion, with traders potentially taking profits after the recent surge.

Cardano (ADA)

Key points:

• Cardano has increased by about 34.48% since 6 July.

• Its net network growth remained steady at 0.13%.

What you should know - Cardano has been on a tear lately, surging 34.48% since 6 July. This bullish momentum saw ADA break above a key resistance level at $0.4260, potentially paving the way for a test of the next resistance zone at $0.4671. However, a recent pullback saw ADA retest the $0.4260 level on 14 July. This level could now act as support, preventing further price dips. On the downside, a stronger support sits at $0.3455. The technical indicator, MACD, currently sits in neutral territory, alongside its signal line. This doesn't provide a clear directional signal but suggests a potential pause in the upward trend.

EOS

Key points:

• EOS has shown notable gains over the last day.

• The Total Value Locked (TVL) on the network has also seen an increase.

What you should know - EOS has shown signs of life recently, bouncing back 37% from its 5 July low of around $0.43. However, the road to recovery remains long, with the price still down nearly 49% from its April high of $1.15. Looking at the short-term picture, $0.7966 appears to be the first hurdle for bulls to overcome. If breached, a potential test of the longer-term target of $0.8469 could be in sight. The current momentum seems to favor the bulls, at least in the immediate future. Technical indicators provide mixed signals. Both the MACD and its signal line currently sit below the neutral zone; there is some room for further growth.