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Bitcoin Lags As XRP And Ether Rally Ahead Of Unlocking Over $100 Million In Crypto Tokens

VaselineAugust 12, 2024

0 3 minutes read

Bitcoin Lags As XRP And Ether Rally Ahead Of Unlocking Over 0 Million In Crypto Tokens

Bitcoin struggles below $60,000 on Monday, $46 million in derivatives positions liquidated in the past 24 hours.
Ethereum is trying to recover from its recent crash, above $2,600 at the time of writing.
XRP is up nearly 4% and eye recovery at $0.60, a psychologically important level for the altcoin.
Arbitrum, Sandbox, Starknet, and Avalanche face off with over $100 million in unlocked tokens this week.

Bitcoin, Ethereum, XRP update

Bitcoin is trading at $59,440 at the time of writing. The largest crypto-asset by market cap is struggling below $60,000, a key level for traders. Data from Coinglass shows that there have been more than $46 million liquidations in the last 24 hours. Bitcoin price hovers around $58,000 after weekend sell-off
Ethereum collapses under selling pressure. Ether is trading above $2,600 on Monday. Vitalik Buterin’s $8 million ETH transfer on Friday raised concerns among traders as large wallet investors move their holdings to exchange wallets.

Chart of the day

SEI

SEI/USDT daily chart

The SEI has recovered from its August low of $0.2026, and is at $0.3066 at the time of writing. SEI’s price is up nearly 15% at the time of writing on Monday and is likely to extend gains by another 13.42%. The target for SEI is $0.35.

The MACD (Moving Average Convergence Divergence) indicator shows the MACD crossing above the signal line. This is considered an optimistic sign for SEI.

The SEI could find support in the Fair Value Gap (FVG) between $0.2616 and $0.2813, as seen in the SEI/USDT daily chart above.

Market updates

Marathon Digital Holdings will finance the Bitcoin purchases by selling $250 million in debt, according to an official press release.
Binance plans to convert Monero (XMR) to stablecoin USD Coin (USDC) on September 2 as part of the token delisting process.
Sandbox (SAND), Arbitrum (ARB), Starknet (STRK), and Avalanche (AVAX) are set to unlock over $100 million in assets this week, data from token.unlock shows.

Tokenunlock

The token unlocks this week

Unlocks could increase selling pressure on assets, having a negative impact on prices.

Industry updates

Data from IntoTheBlock shows that 66% of wallet addresses holding Ethereum are currently profitable and most ETH holders have unrealized losses even with the recent market crash.

Only 66% of Ethereum addresses are currently in profit.

Last week’s market drop significantly hurt Ethereum, pushing many holders into the red.

The last time we saw a similar percentage of profitable holders was in October 2023, when Ethereum was trading around $1,800. pic.twitter.com/XhMonaaSPA

— IntoTheBlock (@intotheblock) August 12, 2024

If the price of Bitcoin exceeds $72,000, it would liquidate more than $15 billion in derivative positions, according to Coinglass data.

Bitcoin

Bitcoin liquidation heat map

The Crypto Fear and Greed Index shows extreme fear among traders as Bitcoin struggles below $60,000 on Monday.

crypto

Fear and Greed Index

Frequently asked questions about Bitcoin, altcoins, stablecoins

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any person, group or entity, which eliminates the need for third parties to participate during financial transactions.

Altcoins are any cryptocurrency other than Bitcoin, but some consider Ethereum to be a non-altcoin because it is from these two cryptocurrencies that the fork occurs. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and therefore an “improved” version of it.

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset they represent. To achieve this, the value of any stablecoin is tied to a commodity or financial instrument, such as the US dollar (USD), with its supply regulated by an algorithm or demand. The main purpose of stablecoins is to provide an on/off ramp for investors who want to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value, as cryptocurrencies in general are subject to volatility.

Bitcoin dominance is the ratio of Bitcoin’s market cap to the total market cap of all cryptocurrencies combined. It provides a clear picture of Bitcoin interest among investors. A high dominance of BTC usually occurs before and during a bull run, where investors resort to investing in relatively stable and high market capitalization cryptocurrencies such as Bitcoin. A decline in BTC dominance usually means that investors move their capital and/or profits to altcoins in search of higher returns, which usually triggers a burst of altcoin rallies.

VaselineAugust 12, 2024

0 3 minutes read