Worldcoin to cross its ATH?

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Bitcoin ETFs see surge in inflows amidst price rally and political developments

Key points:

• Investor confidence in Bitcoin's price prospects is on the rise.

• Bitcoin price has increased 23% since 5 July.

News - U.S. exchange-traded funds (ETFs) tracking Bitcoin are experiencing a surge in investor interest, with Tuesday recording the highest single-day inflow of $422.5 million since early June. This extends a seven-day winning streak for these investment vehicles.

Details of the inflows - BlackRock's IBIT fund led the pack, attracting over $260 million on Tuesday. Notably, all but three of the 11 U.S. Bitcoin ETFs saw inflows, collectively surpassing $1 billion over the past three days. This surge reflects growing confidence in Bitcoin's future price performance.

Bitcoin itself has seen a 23% increase since 5 July, rising from a low of $53,500 to its current price of $65,800. Several factors are believed to be contributing to this positive trend.

What are those factors? Firstly, the selling pressure from Germany's Saxony state appears to be exhausted. Secondly, the recent improvement in the likelihood of a Donald Trump victory in the upcoming U.S. presidential election is seen as a positive development by some investors.

Trump's selection of Bitcoin holder and pro-crypto Republican James David Vance as his running mate is viewed as a sign of crypto's growing political influence. Vance has been a vocal supporter of Bitcoin and digital assets since 2021, and recently circulated draft legislation aimed at regulating the crypto space.

FTX and CFTC settle for $12.7 Billion, awaiting court approval

Key points:

• FTX and CFTC have reached a $12.7 billion settlement to resolve fraud lawsuit.

• Settlement awaits court approval and marks a step towards FTX's reorganization.

News - Bankrupt cryptocurrency exchange FTX has reached a significant milestone in its recovery efforts, agreeing to a $12.7 billion settlement with the U.S. Commodity Futures Trading Commission (CFTC). This move resolves a 19-month legal battle stemming from fraud allegations against FTX.

The settlement, currently awaiting court approval, follows months of negotiations between both parties.

According to a recently filed document, both the CFTC and FTX CEO John J. Ray III believe the agreement is "an integral and valuable component" of FTX's proposed reorganization plan.

The backstory - The CFTC lawsuit, filed in December 2022, accused FTX, its former CEO Sam Bankman-Fried, and its affiliate Alameda Research of fraud and misrepresentation in marketing its digital commodity asset platform. The settlement consists of $8.7 billion in restitution and $4 billion in disgorgement.

For FTX creditors, the settlement offers a path forward. The proposed reorganization plan outlines a potential 118% return for 98% of creditors with claims under $50,000, based on the value of assets at the time of FTX's bankruptcy filing.

Worldcoin extends lock-up period for WLD tokens, price surges

Key points:

• Worldcoin extends lock-up period for WLD tokens allocated to the team and investors.

• Daily token release reduced from 3.3 million to 2 million to minimize market saturation.

News - Worldcoin, the brainchild of Tools for Humanity (TFH), has implemented a strategic shift in its token distribution schedule.

The move involves extending the lock-up period for WLD tokens allocated to team members and investors. This decision aims to regulate the flow of tokens into the market, potentially stabilizing the token's value.

The previous plan - Previously, the plan outlined a daily release of 3.3 million tokens. However, the revised strategy reduces this figure to 2 million tokens starting 24 July 2024.

This adjustment is expected to lessen market saturation and bolster investor confidence. Indeed, WLD's price witnessed a 23% increase within 24 hours of the announcement.

The lock-up period extension applies to 80% of the tokens, stretching it from three to five years. Consequently, the unlocking process will be spread out over four years, concluding in July 2028. The complete vesting schedule will now extend to 2029.

While the extended lock-up period is expected to promote stability, concerns regarding potential selling pressure linger. Some experts believe the increased supply in the future might incentivize early investors to offload their holdings.

Whales accumulate Toncoin while derivatives market bets on price drop

Key points:

• Toncoin's price has been stuck in a trading range between $6.16 and $8.16 since mid-June.

• Large investors are accumulating Toncoin, potentially anticipating a price increase.

News - Toncoin has been stuck in a trading range since mid-June. The price has bounced between resistance at $8.16 and support at $6.16, leaving investors guessing about its next move.

While the market grapples with uncertainty, whales seem to be betting on a breakout to the upside. Data from IntoTheBlock reveals a staggering 31,000% surge in Toncoin's large holder netflow over the past week. This suggests significant accumulation by these whales, often seen as a bullish signal.

Some share negative sentiment - However, not everyone is on board with the whales' optimism. A substantial portion of the Toncoin derivatives market seems to be anticipating a price decline.

This was reflected in the negative funding rate that has plagued the altcoin since mid-June. Negative funding rates indicate that more traders are holding short positions, essentially betting on Toncoin's price to fall.

If the bears prevail, Toncoin could drop below its current support level at $6.16, reaching $6.93. Conversely, if the bulls manage to take control, Toncoin might experience a surge towards $8.32.

More stories from the crypto ecosystem

• Cardano DEX volumes soar: A bullish sign for ADA?

• Crypto stocks soar with BTC amid turbulence following Trump incident

• Bitcoin: Japan’s Metaplanet mirrors MicroStrategy as BTC hits $65K

• Bitcoin: Will Mt. Gox repayments crash the market?

• XRP whales on a buying spree: What’s behind this movement?

Did you know?

• The technology behind cryptocurrency is open-source, meaning anyone can technically create their own crypto. However, gaining traction and value is another story.

• Unlike forgetting your debit card PIN, losing your private key to a crypto wallet can mean losing access to your digital funds forever. Unfortunately, there's no reset button.

• Cryptocurrencies have the potential to revolutionize more than just finance. They can be used for secure data storage, voting systems, and even supply chain management.

Top 3 coins of the day

XRP

Key points:

• XRP's MVRV ratio increased sharply, which can be inferred as a bullish signal.

• The token’s network growth remained strong and resilient.

What you should know - XRP has been on a tear, eclipsing other top 20 cryptos with a 40% gain in just the last week. Bulls are emboldened by a potential "higher high" pattern on the daily chart. From its 5 July low of $0.38, XRP has surged over 62%. The next hurdle sits at $0.67, with some analysts eyeing $1 if the momentum persists. However, caution is advised. The RSI indicator at 76 suggests XRP is overbought, potentially inviting a bearish correction. Support could emerge between $0.44 and $0.47.

Solana (SOL)

Key points:

• The coin has entered into a relatively high volatility zone since 24 February.

• SOL’s funding rates saw a sharp uptrend over the last few days.

What you should know - After a strong start to 2024, Solana (SOL) hit a wall at $202 and has been under bearish pressure for the past three months. It shed 37% and repeatedly tested support at $127. A recent surge above $135 has reignited bullish sentiment, with SOL currently trading at $162, up 14% in a week. The near-term hurdle lies between $179 and $196 while the support zone stood within $119-$106. The Awesome Oscillator's green histogram suggests bullish momentum would continue, but a confirmation above resistance is needed for a sustained uptrend.

Polygon (MATIC)

Key points:

• MATIC's 24-hour trading volume stood at $305.77 million.

• The TVL locked on the blockchain was $11.50 billion.

What you should know - MATIC remains locked in a downtrend since its March peak of $1.29. While a potential reversal is brewing, the coin's strength is questionable. After forming lower lows until mid-April, MATIC entered a period of sideways trading. A drop to $0.4281 in early July sparked a bullish response, but the current momentum lacks force. The near-term resistance sits at $0.7431, but the neutral RSI reading of 51 suggests bulls may struggle to break through. Hence, a stronger push is needed to confirm a bullish trend reversal.