Solana cleared in Binance case

July 30, 2024

Reading time: 5 minutes

U.S. government's Bitcoin transfer pulls the coin below $67k

Key points:

  • 29,800 BTC related to the Silk Road case was moved to new addresses.

  • The 10,000 BTC transfer might be linked to institutional custody or service.

News - On Monday, the U.S. government executed a significant transfer of seized Bitcoin, sending $2 billion worth to a new address. Thereby, causing a notable dip in prices which fell below $67,000, extending a downward trend from earlier highs of $70,000.

Blockchain data from Arkham Intelligence reveals that 29,800 BTC, associated with the Silk Road case, was moved from a government wallet labeled "U.S. Government: Silk Road DOJ" to an unfamiliar address with no previous transaction history. This address subsequently forwarded 19,800 BTC and 10,000 BTC to two separate locations.

Analysts from Arkham suspect that the substantial 10,000 BTC transfer, valued at approximately $670 million, could be a deposit to an institutional custody or service provider. Historical patterns suggest that such movements often precede asset sales, contributing to investor unease.

The timing of this transfer is particularly notable given recent developments in the political arena. The day before, former President Donald Trump pledged at the Bitcoin 2024 conference in Nashville to establish a "strategic national bitcoin stockpile" if he wins the upcoming election.

Grayscale's Ether ETF outflows expected to slow down in the next few days

Key points:

  • Other Ether ETFs have experienced significant inflows.

  • Institutional investors maintain a positive outlook on Ether.

News - Massive outflows from Grayscale’s newly converted Ethereum Trust (ETHE) ETF are anticipated to subside by the end of this week, according to market analysts. This could potentially lead to a surge in the price of Ether.

Since its conversion from a trust to an ETF on 24 July, ETHE has experienced a significant outflow of over $1.7 billion. This represents nearly 18% of the fund’s initial value.

Despite other Ether ETFs attracting substantial inflows, totaling over $1 billion combined, ETHE’s outflows have overshadowed the overall market.

Analysts believe the heavy selling pressure is likely to ease in the coming days, mirroring the trend seen with Grayscale’s Bitcoin ETF. Historical data suggests that a price rally often follows a period of intense outflows.

While the short-term outlook appears promising, institutional investors remain optimistic about the long-term prospects of Ether. BlackRock, a leading asset manager, has reported strong demand for Ether exposure and plans to include crypto-based ETFs in its model portfolios by the end of the year.

Toncoin under pressure from whale activity and rising profit-taking

Key points:

  • Toncoin has experienced a recent price increase after a two-week decline.

  • Whale activity has significantly decreased, suggesting potential selling pressure.

News - Telegram-based cryptocurrency Toncoin (TON) has seen its recent price surge potentially jeopardized by a significant decline in whale activity.

Despite outperforming Bitcoin for much of the year, TON faced a two-week downturn before rebounding. However, underlying metrics suggest the rally might be short-lived.

Data shows a dramatic 97% decrease in net inflow from large TON holders in the past week. This indicates a shift from accumulation to selling, with whales offloading 1.4 million TON tokens. Such substantial selling pressure could reverse the recent price gains.

Additionally, the rising ratio of profitable on-chain transactions suggests increased profit-taking. While this is typically a positive sign, it can also precede a price decline if selling pressure intensifies.

These factors combined paint a cautious outlook for TON, suggesting that the recent price surge may be temporary. Investors should remain vigilant as the market reacts to these developments.

SEC adjusts lawsuit against Binance, clears Solana of security status

Key points:

  • SEC removes Solana from the list of securities in its Binance lawsuit.

  • This decision marks a significant shift in the SEC's stance on cryptocurrencies.

News - The U.S. Securities and Exchange Commission has made a significant adjustment to its lawsuit against cryptocurrency exchange Binance. In a surprising move, the regulatory body has removed Solana from its list of digital assets classified as securities.

This decision marks a departure from the SEC’s previous stance and could have far-reaching implications for the cryptocurrency industry. The agency had initially alleged that multiple cryptocurrencies, including Solana, were securities subject to stringent regulations.

While the crypto community has expressed enthusiasm over the news, with some predicting potential price surges for Solana, the broader market reaction has been muted. Solana’s price has actually dipped in the past 24 hours.

The SEC’s revised stance on Solana could offer greater clarity on the regulatory landscape for cryptocurrencies and may pave the way for the development of a Solana exchange-traded fund (ETF). However, the broader implications of this case on the global crypto regulatory framework are yet to be fully understood.

Interesting facts

  • Dogecoin utilizes a unique mining mechanism called merged mining, which allows it to be mined simultaneously with Litecoin. This means that miners can mine both Dogecoin and Litecoin at the same time without any extra computational effort.

  • Ethereum has its own "ghost towns" in the form of abandoned smart contracts. These contracts, though defunct, remain immutable, potentially locking away Ether or tokens indefinitely.

  • Back in 2018, someone paid 600 ETH for a CryptoKitty Dragon. At the time of the sale, 600 ether was worth about $170,000.

Top 3 coins of the day

Ethereum (ETH)

Key points:

  • ETH was trading at $3,335 at the time of reporting.

  • In the last 24-hours, $6.81M shorts were liquidated.

What you should know - Ethereum's price dynamics are currently influenced by key resistance and support levels. The $4,000 psychological barrier has been a significant long-term resistance, while $3,972 marks a crucial short-term hurdle. Presently, ETH is interacting with a downtrend line, with buyers targeting a breakthrough above $3,500 in the near term. Despite heightened volatility driven by ETH ETF demand, buying and selling pressures are currently balanced. If bullish momentum wanes, Ethereum could swiftly decline to the $2,957-$2,778 support zone. At the moment, the Chaikin Money Flow (CMF) is at 0.10, indicating neutral accumulation.

Dogecoin (DOGE)

Key points:

  • Bears had an upper hand on the DOGE’s daily chart.

  • Short-term market sentiment remained neutral.

What you should know - Dogecoin (DOGE) is making an effort to recover after a recent price drop. Although initial signs point to a potential trend reversal, the absence of a significant increase in trading volume raises concerns about the durability of this uptrend. DOGE is currently priced at $0.1294, reflecting a 3.81% decline over the past week. Despite this downturn, 77% of DOGE holders remain in profit, and the RSI stands at 53, suggesting neutral market sentiment. The current low volume and moderate RSI indicate that while there may be a reversal in play, its strength and longevity remain uncertain. Traders should closely monitor volume changes and broader market conditions to assess the trend's sustainability.

Pepe (PEPE)

Key points:

  • Analysts predict PEPE might reach $0.000017 soon on the back of buying pressure.

  • Its 60-day MVRV ratio remained high last week, which was a bullish signal.

What you should know - Pepe has surged by 54% over the last 24 days but has been moving sideways for the past 13 days, showing less volatility compared to other memecoins. Currently, if bullish momentum persists, Pepe could potentially rise to $0.00001567 in the near term. However, this outlook is uncertain due to bearish divergence signals from the MACD and signal lines. On a positive note, the number of long-term holders—addresses holding Pepe for over a year—has increased in recent months, reflecting growing investor confidence in the memecoin. Despite the sideways movement and bearish signals, the increase in long-term holders suggests underlying support and potential for future gains if market conditions improve.

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