- Unhashed Newsletter
- PEPE challenges Shiba Inu
PEPE challenges Shiba Inu
Reading time: 5 minutes
Bitcoin decouples from altcoins, shows strong accumulation and upward momentum
Bitcoin's price jumped 12.61% in the last seven days, reaching $48,313.
Strong accumulation by investors suggests confidence in Bitcoin's future and a potential "super cycle" in 2024.
News - Bitcoin's exchange reserves took a nosedive in the past week, indicating a significant increase in investor accumulation as the cryptocurrency surged above the $48,000 mark recently. This surge in accumulation has sparked a wave of bullish sentiment among investors, with many speculating that Bitcoin could soon reach the $50,000 milestone.
While Bitcoin took center stage, the rest of the cryptocurrency market seemed content to watch from the sidelines. This potential decoupling suggests Bitcoin may be charting its own course in the coming months.
More bullish signals? Network profitability is also adding to the positive sentiment. Bitcoin holders are currently enjoying an average return of 12.37% on their investments, making the asset even more attractive. However, some caution is advised as historically, high MVRV readings have often been followed by periods of selling.
While whales, or large investors, did join the buying spree, their activity wasn't significantly higher compared to previous weeks. This suggests they may be waiting for a clearer signal before making bigger moves.
In conclusion - Industry experts are also echoing the bullish sentiment. Renowned analyst PlanB, creator of the stock-to-flow model, predicted an inevitable bull market for BTC. In fact, the Fear and Greed Index indicates the broader market is leaning towards greed, suggesting further accumulation and a potential push towards the $50,000 mark.
Ethereum co-founder's massive ETH transaction sparks price speculation
The unprecedented transfer from Ethereum’s co-founder initiated a shockwave into the market.
However, the price didn’t have a major impact. The bulls remained steadfast and buying pressure was dominant.
News - A significant transaction by Ethereum co-founder Jeffrey Wilcke has captured the attention of many, prompting speculation about its potential implications for the price of ETH.
Wilcke transferred a large amount of Ethereum, about 4,300 coins, to the Kraken exchange. This ETH was worth around $10.7 million, with each coin valued at $2,482 at the time. Following the sale, the price of ETH did note a significant decline, but the bulls took over.
Instance from the past - This isn't the first time his moves have lined up with price changes. In June, he deposited 22,000 ETH into an exchange, worth $41.1 million at the time, just before a significant downturn in the market. Now, traders are worried history might repeat itself.
But not everyone is panicking. Some experts like analyst Adrian Zduńczyk think this is just a bump in the road for Ethereum. He says the overall trend is still positive, and this little dip is just a normal part of the market.
What do the stats predict? Analysis of the Netflow metric on CryptoQuant indicated that the deposit did not significantly impact the overall trend of ETH outflows from exchanges. In fact, more than 9,800 ETH continued to leave exchanges by the end of trading on February 10th. At the time of writing, ETH was trading at $2,549 with an increase of 10.56% over the last seven-days.
Pepe token leads meme coin market surge with impressive gains
The number of whale positions betting on Pepe’s price increase was up by 50% compared to the start of February.
A few of the market indicators looked bullish on the meme coin but the RSI was neutral.
News - The frog-themed cryptocurrency, PEPE hopped back into the spotlight with a 12.83% surge over the past week, breaking free from a month-long slump.
And things might just get better. Technical analyst Ali Martinez pointed out a buy signal on Pepe's chart, fueling bullish predictions.
While the meme coin’s price action remained bullish, its Relative Strength Index (RSI) was sitting near the neutral mark. The possibility of RSI bouncing above that level seemed high, as PEPE’s Bollinger Bands suggested that its price was moving above the 20-day SMA, indicating high buying pressure, which can act as a trigger for the RSI to move up. On top of that, its MACD also displayed a bullish crossover.
How did the whales react? Whales jumped on the bandwagon too. Data showed a surge in whale transactions, indicating their belief in Pepe's potential. The number of whale positions betting on a price increase rose significantly, suggesting growing confidence in the meme coin.
Well, at the time of this writing, PEPE was enjoying bullish attention with a 2.53% increase in the past 24 hours.
Nigeria mulls crypto regulation to address financial crime concerns
The CBN has issued guidelines permitting virtual asset service providers to open accounts with banks in Nigeria.
The Nigerian government has been training some law enforcement agents as compliance specialists, but that might not be enough.
News - Financial experts are calling on the Nigerian government to step up regulation of cryptocurrency activities, citing concerns about money laundering and other financial crimes. Adedeji Owonibi, co-founder of blockchain intelligence firm A&D Forensics, believes the lack of clear regulations creates a breeding ground for illegal activities.
This call for tighter controls comes despite the Central Bank of Nigeria's (CBN) recent move to allow banks to work with virtual asset service providers (VASPs). However, Owonibi emphasizes the need for stricter compliance measures to ensure these partnerships don't become gateways for criminal activities.
What’s more? He urged financial institutions to employ compliance specialists to monitor transactions and prevent them from being used for illegal purposes. The CBN previously banned banks from dealing with crypto, but a December 2023 guideline outlined conditions for VASPs to open accounts. Yet, Owonibi warns that banks must remain vigilant in choosing compliant partners to avoid becoming channels for illegal activities.
With growing concerns about financial crime and a desire for a more structured crypto market, Nigeria faces a crucial decision: how to regulate this emerging technology while fostering innovation and protecting its citizens.
More stories from the crypto ecosystem
Did you know?
As of 2024, over 15,000 companies worldwide accept Bitcoin as a payment method. Some of the businesses that accept Ethereum and Bitcoin as payment options are Sotheby, Shopify, and Overstock, along with blue chip companies like Microsoft.
According to 2020 data on cryptocurrency crimes, $1.9 billion in Bitcoins were stolen and lost through fraud. Four months into 2021, crypto users had $432 million stolen.
880% of Bitcoin adoption has increased globally, according to adoption data. This is a year-on-year growth from the second half of 2020 to the second half of 2021.
Top 3 coins of the day
Dogecoin’s value dropped by more than 3% in the last 24 hours.
Negative sentiment around the meme coin remained high.
What you should know - Dogecoin’s price action once again turned bearish after a few days of gains. However, this time the severity of the downturn might be more concerning. A descending triangle pattern formed on DOGE’s chart, which typically means that the meme coin was hitting lower highs over the last few weeks. A plummet under the support level of $0.077 could result in DOGE shedding more of its value. A key market indicator, the Money Flow Index (MFI), hinted that the possibility of DOGE’s price sinking was high as compared to its move up. A decline in MFI indicates sell-offs, which is considered a typical bearish signal.
BONK’s trading volume dropped in the last 24 hours as its market value plummeted.
Market indicators hinted at a further price decline.
What you should know - BONK, the meme coin that gained popularity over the last few months, witnessed a major price correction. Its value plummeted by more than 8% in the last 24 hours, making it one of the top losers of the day. At press time, BONK’s value touched the upper line of the Bollinger Bands, which can be inferred as a bearish signal as it indicates the possibility of sell-offs shortly. Besides, the meme coin’s Chaikin Money Flow (CMF) also registered a downtick, hinting that its price might go down further. The meme coin had strong support near the $0.0000123 mark, and a drop below that level could be troublesome.
Chainlink’s exchange outflow spiked, indicating high buying pressure.
LINK’s market indicators looked bullish and suggested a continued uptrend.
What you should know- Chainlink has astonished investors over the last few weeks with its massive gains, as its value surged by more than 40% in the last month. The bull rally earned LINK a spot on the top 10 list of cryptos by market capitalization. A look at its market indicators suggested that the possibility of a continued northward movement was high. For instance, its MACD displayed a bullish advantage in the market, which was reflected in its price action. The token’s On Balance Volume (OBV) also went up, at press time. A hike in the indicator reflects positive volume pressure that can lead to higher prices.
How was today's newsletter?