From the latest cryptocurrency market intelligence report by Chainalysis, we bring you an executive summary of what went down featuring: How Bitcoin and Ethereum slumped into the crimson bosom of extreme value decline, who were the movers and shakers, and what you can learn from it all.
How Bad Was The Past Week?
Real bad, but not as bad as 2017. Chainalysis reveals that thousands of people let go of over 1.2 million bitcoins after being dealt losses within the range of 5% and 25%. Another 120,000 BTCs were hastily given away after a >25% value reduction from their original purchase price.
For Ethereum, it is the same story. Over 22 million transactions of ETH were done at a loss range of 5% and 25% during the time period.
What Fuelled The Dip?
$29,925 and $1,984 were the lowest Bitcoin and Ethereum sunk, exactly nine days ago. Chainalysis provides three plausible reasons for the dip.
- Elon Musk’s energy concerns.
- China’s clampdown on miners, and
- Eroding leverages and large liquidations.
Of the three, the last had the greatest effect over the past few days with over $10 billion worth of leverage already eroded from the total crypto market coffers, according to Crypto expert, Will Clemente.
Looking at the case of China-based miners, and contrary to widespread beliefs that the large-scale exit of miners in China may have further fuelled the dip, Chainalysis reveals that miners do not have a significant influence over the market in the short run. This is evident in their 1% liquidity contribution to exchanges as compared to 75% for exchange-to-exchange transactions.
In reaction to energy concerns, there’s already an energy-centric coalition towards providing a solution courtesy of Bitcoin millionaire and CEO of MicroStrategy, Michael Saylor, and Elon Musk.
Who is losing? The Holders or the Quick Sellers?
Over $3.2 billion of total losses for Bitcoin were realized by people who had barely held BTC for one to three months. This simply indicates that older holders are holding tight, while a significant number of newer investors are counting all losses and throwing in the towel on Bitcoin.
In conclusion, Chainalysis believes that the future is bright for both Bitcoin and Ethereum. The fact that BTC was able to rebound from its fall below the $37,800 resistance – a resistance that marked the average entry-level of the total bitcoin investors within the past twelve months – shows that a large number of investors confidence is still intact and unwavering.
It is the same for Ethereum, being able to bounce back from a twelve-month average entry price ceiling of $1,700.
With institutional investors now frequently making a grand entrance into the crypto space, the market is surely too loaded to fail. Will Clemente last week, reported 125,000 BTCs newly purchased. Chainalysis now reports an extra 70,000 new purchases.
‘Bitcoin’s six-week run of outflows has been driven’ by these factors
The Bitcoin market was witnessing strong sell-offs for over a month now. On Monday, the largest digital asset plunged to its monthly lows of $31k, triggered by the ongoing crackdown by China. This has spread panic among investors.
Over the past week, Bitcoin outflows totaled a massive sum of $89 million, while the bitcoin outflows value hit $487 million for the year. This was 1.6% of assets under management as indicated by the data offered by CoinShares.
The above chart indicated that the top cryptos like Bitcoin and Ethereum were both noting a higher selling pressure in the current market.
This was the third consecutive week of outflows for the entire crypto market and it amounted to $79 million leaving the market. Researchers have termed this as ‘the longest bear run in outflows since February 2018’. Currently, for June, the net outflows remained high at $210.5 million with another week left of the month.
According to Matt Weller, global head of market research at Forex.com:
“Bitcoin’s six-week run of outflows has been driven by the combination of environmental concerns and an increasingly antagonistic regulatory environment in China. With these themes still in effect and prices subdued, it may be a while before we start to see another period of sustained fund inflows.”
Following China’s crackdown, authorities in one of the largest Bitcoin mining provinces, Sichuan ordered the closing of the cryptocurrency mining projects. Owing to such negative sentiments in the market, BTC value has remained low at $32k, at the press time.
Data from Alternative.me also suggested ‘Extreme Fear’ in the market and its value has fallen to 10, suggesting more fear than greed.
Bitcoin has now lost almost 50% of its value since the peak observed in April.
Ethereum, the second-largest cryptocurrency was also seeing minor outflows of $1.9 million last week. In the previous week, it reported a total outflow of $14.6 million, which was restricted compared to Bitcoin’s outflows. Ether outflows represented only 0.14% of assets under management, suggesting the negative sentiment had remained focused on Bitcoin.
Subscribe to our Newsletter
Terra Virtua’s Mechagodzilla NFT sold for $33,700 by Blockmuse
Blockmuse wins the bidding war for Terra Virtua’s Mechagodzilla non-fungible token (NFT). As per the announcement, Blockmuse, a big Terra Virtual (TVK) fan who has been collecting all Mechagpzilla and Godzilla NFTs, has acquired the NFT for $33,700.
While commenting on the win, Blockmuse stated:
“What’s up, everyone? So delighted to have completed the Mechagpzilla set! Big thanks to Legendary and TVK for what they are doing in this tough market right now. I am working hard at trying to lift my game and continually lar with the NFT community. We need more @Tishran88 &@badass_crypto, who put in the hard work to grow this space.”
Blockmuse further er went on to quote Albert Einstein, stating:
“The most beautiful thing we can experience is the mysterious. It is the source of all true art and all science. He to whom this emotion is a stranger, who can no longer pause to wonder and stand rapt in awe is as good as dead: his eyes are closed.”
Notably, the action was a 1 in 1 event that entailed bidding on a fully animated Mechagodzilla NFT that included the 4 individual animations previously released and some new, never seen animations.
Blockmuse’s latest collection completes his Mechagodzilla and Godzilla collection, which he has been adding to as soon as they get released by the company.
The sale is reportedly the highest-selling Non-Art NFT to be sold on the Terra Virtua platform. This breaks the previous record set in April 2021 by the sale of Kong’s wand, which was sold for $17000.
NFTs or digital collections continue to gain popularity as many seek to explore this new technology. Others know the befits of having digital collections, especially on the blockchain. With his now complete set, Blockmuse will no have to worry about the mint condition of his colligation, nor does he
Terra Virtua is a genuinely immersive collectible platform across Mobile, AR, and VR with unique social, gaming, and creative experiences enabled by blockchain.
In the coming days, Terra Virtua will be unlocking a completely new area in NFTs in terms of 3d animated collectibles
Crypto Trader’s $20 Investment Explodes to $1,184,154,683,482 on Coinbase – But He’s Not Cashing Out
After investing $20 in the crypto markets, one crypto trader just woke up to a one-trillion dollar fortune in his Coinbase account.
Chris Williamson, a nurse from Georgia, says he invested $20 in Rocket Bunny (BUNNY) cryptocurrency on Coinbase last week. After the trade, his portfolio balance soon skyrocketed to a staggering $1,184,154,683,482.
On paper, this made Williamson the richest man in the world.
‘I woke up, it’s like 9:00 a.m. and I always check my phone to check how my crypto to see how it’s doing and I’m just like, ‘Naw, I’m sleeping.
I look at it again and I’m like… at that point I fall out of my bed, literally.”
Despite the big balance, Williamson says he was unable to cash out or send the crypto to a private wallet. He contacted both Coinbase and Rocket Bunny. A representative from Coinbase told him they were looking into the problem, while Rocket Bunny did not immediately respond.
Coinbase later confirmed the trader’s massive balance was a glitch, and would be corrected.
This isn’t the first time the crypto exchange giant had a glitch in its system. Back in April 2020, crypto analyst Captain Scio pointed out a massive blunder on the Coinbase Pro app, showing that someone had purchased 42,085 BTC, worth $306 million at the time, for just 18 cents.
Williamson is keeping a positive attitude on the situation.
“The ongoing joke right now between me and my friends in Coinbase and one of the emails I sent them was like: ‘Look, I need y’all to let me know what’s going on because I got a mega-yacht company ready to build me a penguin-shaped yacht.
‘So, you know, let me know.’”
BUNNY is a utility token on Binance Smart Chain. It’s used to power the broader Rocket Bunny ecosystem of dApps (decentralized applications), which includes Rocket Drop (launchpad), Rocket Swap (DEX) and Rocket Labs (testing ground).
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/GrandeDuc
Sichuan Shutdown Order Cripples Chinese Bitcoin Mining Pools
Coin Cloud Set to Operate 2000 Crypto Kiosks This Year
Paraguayan Official Confirms: In July We Legislate Bitcoin
Global Financial Indexes Provider MSCI Plans to Launch Crypto Indexes
This Bitcoin HODLer Metric Has Just Flipped Green For The First Time In 8 Months – Here’s What This Means
Ethereum On-Chain-Analyse: Interesse trotz Drop groß
U.K’s crypto-users are growing in number, but do they even understand the asset class?
The End of NFTs? NFT Sale Transaction Volume Down 95% Since Early May
WAVES Technical Analysis: Price Can Move Either Ways
Tezos, Algorand, Zcash Price Analysis: 19 June
What governments don’t realize is going to happen with Bitcoin
When does Naraka: Bladepoint release?
Top DeepMind AI Products Revolutionizing The World
Sichuan province in China asks crypto miners to shut down operations
Alstef Group launches new software suite
Alinity talks ASMR meta, Amouranth and indiefoxx Twitch bans
Legends: The premium NFT minting platform
Banks Afraid Of the Risks Associated With Crypto Assets Call for Regulation
Call of Duty League Stage 4 Major Standings
Crypto Analyst Predicts Bitcoin Price Will Reach ‘$150,000 by December 15th, 2021’
Blockchain5 days ago
GSA To Add Litecoin For The First Time In Upcoming Cryptocurrency Auction
1 week ago
Valorant Ep. 2 FORMATION Player Card: How to Claim
News1 week ago
The World Economic Forum’s Cryptocurrency Guide Lists Its Choice Of “Winning” Projects
Uncategorized6 days ago
The World Bank wants no part in El Salvador’s Bitcoin revolution
Uncategorized1 week ago
Mark Cuban: DeFi could be the ‘next great growth engine’ for the US
Blockchain6 days ago
Survey: Hedge Funds Intend To Hold $300 Billion In Crypto Within 5 Years
Uncategorized1 week ago
Banks Should be Scared of DeFi Warns Mark Cuban
Uncategorized6 days ago
Healthcare: A trillion dollar opportunity for blockchain?