- Unhashed Newsletter
- Posts
- Satoshi Nakamoto is back
Satoshi Nakamoto is back
Reading time: 5 minutes
XRP's value under pressure as large holders reduce their wallet balance
Key points:
Addresses holding between 100,000 and 1 million XRP have been selling.
Open Interest, a measure of market liquidity, has also decreased.
News - XRP's recent price gains may be short-lived. Analysis of on-chain data by AMBCrypto revealed a trend of large holders, those with 100,000 to 1 million XRP, reducing their investments.
This sell-off has been contributing to a decline in the token's price from its recent high of $0.52.
More bearish indicators - Adding to the bearish sentiment is a decrease in Open Interest, a metric reflecting the total value of open positions in XRP contracts. It suggested a pullback from buyers, potentially leading to a drop in liquidity. While XRP's one-day volatility spiked recently, analysts believe it could reinforce a downtrend rather than signal a price increase.
Further dampening the outlook is a decline in active addresses, which had risen to 35,000 on 18 May but have since fallen back to 33,100. The recent drop suggests a lack of buying pressure to support the price.
Conclusion - Taken together, these on-chain indicators paint a concerning picture for XRP in the short term. The combination of whale selling, declining Open Interest, and falling active addresses suggests a potential price correction back toward the $0.50 support level, or even lower if selling pressure intensifies.
Kraken affirms no plans to delist USDT in Europe despite regulatory uncertainty
Key points:
Kraken assures European users that Tether (USDT) will remain available for trading.
The firm continues to expand its services in Europe despite regulatory uncertainties.
News - Cryptocurrency exchange Kraken assures its European users that Tether (USDT) will remain available for trading, despite previous reports suggesting otherwise.
Mark Greenberg, Kraken's global head of asset growth and management, clarified in a recent statement that the exchange has "no plans to delist USDT at this time." He emphasized Kraken's commitment to complying with all legal regulations, even those it may disagree with.
What’s more? This clarification comes after a Bloomberg report on 17 May stated that Kraken was "actively reviewing" its USDT listing in Europe to comply with the upcoming Markets in Crypto Assets Regulation (MiCA) framework from the European Union. MiCA aims to establish a standardized regulatory landscape for crypto assets in the region, with specific rules for stablecoins coming into effect on 30 June 2024.
Kraken's decision contrasts with some competitors. OKX delisted USDT in Europe back in March, citing MiCA compliance concerns. Binance also announced similar plans last year but hasn't followed through yet.
Well, Kraken has recently expanded its service offerings in Europe, acquiring licenses in Spain, the Netherlands, and Ireland.
Mistaken BTC transfer reignites discussion on Satoshi Nakamoto's identity
Key points:
Bitcoin user accidentally sends $7,000 to Satoshi Nakamoto's address.
User was attempting to interact with a memecoin using an ordinal.
News - A Bitcoin user accidentally sent nearly his entire holding, worth over $7,000, to an address believed to be owned by Satoshi Nakamoto, the pseudonymous creator of Bitcoin.
According to Arkham Intelligence, a blockchain analytics firm, the user was attempting to interact with a meme coin called PUPS. This process involved sacrificing an ordinal, a type of unique data unit stored on the Bitcoin blockchain. Unfortunately, the user mistyped the address and instead sent his Bitcoin to Nakamoto's long-dormant wallet.
Nakamoto’s discussion revives - This incident has rekindled interest in the mystery surrounding Satoshi Nakamoto's identity and the fate of the vast amount of Bitcoin believed to be held in their address. The wallet now contains over 100 Bitcoin, valued at roughly $6.7 million. Notably, this address hasn't shown any activity since Bitcoin's launch in 2009.
The crypto community responded with a mix of sympathy and surprise. While some expressed empathy for the user's significant financial loss, others speculated that this unexpected transfer might be linked to Nakamoto themself.
Genesis granted court approval for a $3B payout to creditors, DCG excluded
Key points:
Genesis receives court approval for a $3 billion repayment plan for creditors.
The plan allocates 77% of customer claims in cash and crypto.
News - Bankrupt crypto lender Genesis has secured court approval for a $3 billion repayment plan, marking a significant step towards resolving its bankruptcy case. The plan allocates roughly 77% of the value of customer claims in a mix of cash and cryptocurrencies.
However, Digital Currency Group (DCG), Genesis' parent company, will not receive any payouts from the proceedings. This is due to insufficient funds remaining after creditor claims are settled.
The backstory - Genesis filed for bankruptcy in January 2023 after suffering heavy losses from the collapses of Three Arrows Capital and FTX. The company owed over $3.5 billion to its top creditors, leading to initial skepticism about the possibility of full repayment.
The outlook has improved considerably. As of today, claims for major cryptocurrencies like Bitcoin and Ethereum are trading between 97% and 110% of their value for claims exceeding $10 million. Smaller claims under $1 million are currently trading at 74% to 94% of their original value.
The repayment plan also includes fiat currency and stablecoins, with claims ranging from 73% to 91% depending on the account size.
Despite the exclusion from the bankruptcy payout, DCG has reached a separate agreement with Genesis to settle a $620 million loan dispute.
More stories from the crypto ecosystem
Did you know?
With its eco-friendly Proof-of-Stake consensus, Solana can process up to 65,000 transactions per second and offers low transaction fees.
In 2021, the Bitcoin community embraced the Bitcoin Zebra as its fresh mascot. The zebra embodies strength, speed, and agility, characteristics closely linked with Bitcoin.
Polkadot was founded by Gavin Wood, one of the co-founders of Ethereum. It is a multi-chain platform that enables interoperability between different blockchains.
Top 3 coins of the day
Solana (SOL)
Key points:
SOL’s value was up by 22.9% over the last week.
However, its trading volume hasn’t been supporting the price rise.
What you should know - At press time, Solana was trading at $177.89, up by 3.47% in the last 24 hours. This followed a strong weekly performance, with gains exceeding 22%. However, SOL remains down roughly 18.52% from its recent high of $210 reached on 18 March. Sentiment leaned bullish, at the time of writing, but caution was advised. The Fear & Greed Index sat in the greed territory, highlighting buyers' dominance in the market. Historically, Solana has experienced significant price drops following periods of high greed. If SOL breaks above the resistance level of $200 and maintains upward momentum then $210 can also be breached in the next few days. On the contrary, if SOL loses bullish momentum, it could slide down to its near-term support of $125.
Avalanche (AVAX)
Key points:
AVAX’s OI Weighted Funding Rate has been relatively low.
Its Derivatives market volume has been picking up pace after 13 May.
What you should know - Avalanche faced an uphill battle at $36.07, down 1.13% over the last day. Despite a strong year, AVAX has been on a downtrend since late March. Technical indicators offer mixed signals. The MACD hovering below the neutral line suggests a bearish outlook, but remaining above the signal line hints at a potential trend reversal. Crucially, AVAX finds strong support around $30. If the price falls below this zone, further decline is likely. Conversely, a break above the near-term resistance at $46 could signal a bullish reversal. Investors' sentiment and broader market trends will be playing a significant role in its future price moves.
Near Protocol (NEAR)
Key points:
NEAR has been up 10.36% in the last seven days.
On a higher timeframe, NEAR’s market structure looked bullish.
What you should know - At press time, NEAR was trading at $7.88, holding steady after a recent upward trend that began in mid-April. However, a key hurdle lies ahead. The $7.95-$8.44 zone has emerged as a strong resistance area, potentially capping further gains. The Chaikin Money Flow (CMF) sat at 0.01, indicating balanced buying and selling pressure. This neutrality suggests a potential pause or consolidation period before a breakout attempt on the resistance zone. If NEAR can overcome the near-term resistance around $7.95, it could signal a continuation of the uptrend. Conversely, a price drop below the $6.91 support level could indicate a pullback.
How was today's newsletter? |