Crypto markets got you a major case of FUD? You're not the only one.
One minute we're mooning, the next we're sliding to the bottom.
This meme sums up the entire week in crypto:
Inflation data came out better than expected, but Bitcoin's not exactly pumping.
And to make sense of it all, we will break down today's top crypto news and decode this market madness in the analysis section.
TLDR:
And at the end, a quick market analysis for you!
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Let’s dive in!
Silk Road's Crypto Stash Is on the Move
The U.S. government just shuffled $600 million worth of Bitcoin, seized from the infamous Silk Road dark web market, to a Coinbase Prime wallet.
We're talking 10,000 BTC here. Arkham Intelligence spilled the beans on this digital money move.
But here's the million-dollar question: Are they gonna cash out or HODL?
But do we have any word or announcement from the government itself? Are they even allowed to offload that much crypto? Read the full story !
Wall Street's Crypto FOMO
And even Morgan Stanley's been secretly stacking sats.
The Wall Street giant just revealed a $188 million stake in BlackRock's iShares Bitcoin Trust ETF.
That's over 5.5 million shares as of June 30.
The firm is also dipping its toes into other crypto products. They've got smaller stakes in Valkyrie, Fidelity, Bitcoin Depot, Bitwise, Invesco Galaxy, and ProShares Bitcoin funds.
And they're not alone in this crypto shopping spree. Goldman Sachs is sitting on $238 million in IBIT and other ETFs. Even state pension funds are getting in on the action. Wisconsin and Michigan? Yeah, they're now indirect Bitcoin hodlers.
But the real whale in the room? Millennium Management. They've got $2 billion spread across five crypto ETFs.
But why isn’t this institutional investment giving prices a boost? Read the full story !
And It’s Time for TON!
Toncoin (TON) has surged 19.2% in the past week, hitting highs we haven't seen in a month.
What's behind this epic run? Let's break it down.
First up, Binance just gave TON the VIP treatment. They've added it to their Launchpool, letting users stake BNB and FDUSD to earn TON tokens.
But what triggered Binance’s confidence in TON? And what other factors are playing a role in this price boost? Read the full story !
Coinbase's Also Making Big Bitcoin Moves
Coinbase is about to drop cbBTC, a wrapped version of Bitcoin, on their Base network. Details are still under wraps, but this could be a game-changer for tokenized assets.
Why's this a big deal?
Well, demand for Bitcoin on Ethereum-compatible chains is booming. Coinbase jumping into this pool could seriously shake things up.
Remember cbETH, their wrapped Ethereum token? Launched in August 2022, it's already got a circulating supply of about 210,000.
Jesse Pollak, the brains behind Base, is talking about building a "massive bitcoin economy" on Base.
But what’s really the big deal? How can it help Bitcoin itself? Read the full story !
Another Meme Coin Moons
Solana's latest meme coin sensation, Gigachad (GIGA), is causing FOMO.
The coin surged 15% after getting a nod from none other than Ernest Khalimov, the face behind the iconic gigachad meme.
And as if that wasn't enough, bodybuilding legend Mike 'Titan' O'Hearn jumped on the GIGA train too.
But GIGA isn't just riding on meme power alone. The team behind it is pushing a sports brand, Giga Fitness, alongside the coin.
The endorsement train doesn't stop with Khalimov. UFC fighter Paulo Costa and bodybuilder Mike O'Hearn have also shown their support for GIGA.
So this meme coin is getting legit celebrity endorsements? What do analysts think? Read the full story !
And a Quick Analysis…
Bitcoin and Ethereum prices have been trading sideways, but key indicators suggest we may be on the cusp of a significant move.
Let's start with the elephant in the room - inflation .
The latest CPI and PPI data came in lower than expected , with July CPI inflation dropping to 2.9% and PPI falling to 2.2%.
This trend is increasing the likelihood of Fed rate cuts in the near future.
We saw a similar situation play out in early 2023 when inflation started easing.
That period preceded a strong rally in crypto prices as investors anticipated monetary easing.
However, it's worth noting that if inflation falls too quickly, it could signal recession risks.
Speaking of recession risks, employment data has become increasingly important. The jobs report we saw a few weeks ago threw a wrench in predictions of an imminent downturn. This push-and-pull between inflation and employment data is keeping markets on edge.
What Do Crypto-Specific Indicators Suggest?
Now let's zoom in on crypto-specific indicators.
The MVRV Z-Score, another key indicator, is hovering around 1.65. According to past historical experience, when this indicator is at a historical high, the probability of a downward trend in Bitcoin prices increases, implying we're not yet in overheated territory.
On-Chain Metrics Paint a Picture of Patient Holding
Diving into Glassnode's on-chain metrics reveals some interesting trends beneath Bitcoin's recent price movements.
The Accumulation Trend Score has hit its maximum value of 1.0, indicating strong buying behavior across the board, especially from larger wallets.
This aligns with data showing Long-Term Holders (LTHs) have added 374,000 BTC to their holdings over the past three months as discussed above.
Despite recent price volatility, Bitcoin has managed to stay above the Active Investor Cost Basis - the average purchase price of active coins. This suggests investors generally remain optimistic about future price movements.
Interestingly, the Long-Term Holder Sell-Side Risk Ratio is relatively low, indicating that long-term holders aren't rushing to sell at current prices.
Collectively, these metrics suggest a pattern of patient, conviction-driven holding behavior. Despite recent market choppiness, long-term investors appear to be accumulating more Bitcoin and showing little interest in selling at current prices.
This could potentially set the stage for upward price movement if market sentiment improves and buying pressure increases in spot markets.
Remember, while these metrics provide valuable insights, they're not guarantees of future performance. Always consider multiple factors and do your own research when making investment decisions.
