Category: Cryptocurrency News

The price of BTC rose sharply and fell almost as fast over the past three days amid two recent events impacting pending applications for spot Bitcoin ETFs.

Base, an Ethereum layer 2 (L2) network developed by prominent cryptocurrency exchange Coinbase, has seen its total value locked (TVL) soar to new heights on Friday, August 31. This surge was triggered by the recent launch and growing hype around the decentralized exchange (DEX) platform Aerodrome. Total Value Locked on Base Reach $333 Million The total decentralized finance (DeFi) deposits on Base have hit a new all-time high following a nearly 76% spurt in the past 24 hours. According to data from DefiLlama, the network’s TVL currently stands at $346.39 million, jumping from $196.8 million a day ago. Total Value Locked on the Base network | Source: DefiLlama This sharp rise has seen Base leap into the top ten blockchains with the largest TVL, sitting above Solana in ninth position. However, Ethereum remains the dominant network in the decentralized finance space, with a total value of roughly $22.1 billion. 💥 BREAKING: Total Value Locked on @BuildOnBase has surpassed $300M and entered the top 10 blockchains with the largest TVL 🔵🚀 pic.twitter.com/KC7tClvA1g — Base Daily (@BaseDailyTK) August 31, 2023 Related Reading: Ethereum Holds Uptrend Support And Could Aim Fresh Rally To $1,800 Interestingly, this latest feat only underscores the overall progress of Base since opening its doors to the public on August 9, 2023. The Coinbase-incubated network’s TVL has swelled more than 733% since the public mainnet launch.  One of the notable catalysts of the Base’s growth was the short-lived hype of the social media platform Friend.tech. However, activity on the decentralized app has since hit a snag, with trading fees dipping by more than 94%.  Aerodrome Drives An Inflow Of $170 Million To Base As earlier mentioned, the latest resurgence in Base’s DeFi deposits was triggered by the growing interest in the Aerodrome protocol, which recently launched on the blockchain. Aerodrome is a decentralized exchange developed by the team behind Velodrome, a popular DEX on the Optimism chain. The platform rewards users who provide liquidity and participate in protocol governance with its native token, AERO. Related Reading: Coinbase (COIN) And Bitcoin-Related Stocks Soar Following Grayscale’s Victory Thanks to the AERO emissions, which began on August 30, Aerodrome has attracted more than $170 million in value to the Base network. Meanwhile, this has reflected a significant 6,000% rise in the protocol’s TVL in the past 24 hours.  Despite the initial negative sentiment brewing around Base due to the BALD rug pull, and various DeFi protocol exploits, it appears that major cryptocurrency projects are continuing to expand to the layer 2 network.  PancakeSwap, the second-largest decentralized exchange, is one of the protocols to have recently joined the trend. The DeFi platform went live on the Base network on Thursday, 30th of August. The cryptocurrency market cap on the daily timeframe | Source: TOTAL chart on TradingView Featured image from Pexel, chart from TradingView

As the price of Bitcoin and the general crypto market has rallied, leading to a much-needed increase in price, Bitcoin Cash (BCH) investors are once again on a profitable path. The majority of investors are now in the green following its double-digit surge in the last week. But now the question posed is, will the price of BCH continue to maintain this surge? Bitcoin Cash Short And Long-Term Holders Enjoy Profits In a Thursday post, on-chain data tracking platform Santiment revealed that both short and long-term holders of Bitcoin Cash are doing quite well right now. The chart shared by the tracker showed that the average returns for 30-day and 365-day holders have risen above their average cost price. Related Reading: Grayscale Victory Sends Bitcoin Open Interest Surging After Hitting One-Year Lows This means that investors who got into the digital asset in the last month, as well as those who have been holding for a year, are the ones doing well right now. It is also the first time in 10 weeks that this cohort of BCH investors is seeing profit. Short and long term BCH traders move into profit | Source: Santiment on X The data from Santiment is also backed up by that from another on-chain tracker IntoTheBlock. According to the latter’s data on its website, 59% of all BCH investors are seeing green compared to 38% sitting in the red and 3% in neutral territory. Furthermore, IntoTheBlock shows that 96% of holders have held for more than one year, with 3% holding between 1-12 months, and 1% holding for less than one month. Combining the data from both trackers tells us that there are more long-term investors in profit compared to short-term investors. This fact reinforces the long-standing belief that buying and holding is usually the best way to invest in cryptocurrencies. But Can BCH Hold Its Gains? The fact that so many short and long-term holders are currently in profit can be attributed to the digital asset’s spike in the last week. Following the Grayscale ruling that saw the market surge, BCH’s price rose over 14%, bringing its value to the $220 level before the retracement. Most of these gains have been sustained so far, as evidenced by the high percentage of holders in profit. Related Reading: Is Vitalik Buterin Selling His ETH Stash? Let’s Take A Look At His Transactions However, Santiment points out in its report that for Bitcoin Cash to continue to rise, it would be up to the whales. This is because, during the price spike, there was an increase in whale activity in relation to the BCH token. So they likely played a part in the asset’s rise. If the whales continue to be active and put buying pressure on the coin, then the price of BCH could continue to appreciate. However, a turn from buy to sell among these large holders would quickly crash the price, especially since the market is already feeling the euphoria felt earlier this week start to recede. Presently, data from Coinmarketcap shows that Bitcoin Cash is trading at $219, a 14.57% increase in the last week. BCH price reclaims $220 | Source: BCHUSD on Tradingview.com Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet… Featured image from WallPaper, chart from TradingView.com

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In a recent legal win for Grayscale against the US Securities and Exchange Commission (SEC), Bitcoin (BTC) soared to $27,000. However, the bullish sentiment seems to have waned as the cryptocurrency has retraced to $26,000.  QCP Capital, a cryptocurrency analysis firm, has provided valuable insights into the implications of this ruling and the overall market outlook. BTC’s Short-Term Challenges Persist According to QCP, while the ruling is a positive outcome for the industry, the firm notes that its near-term impact on spot prices is “inconsequential.”  The firm cautions against getting caught up in the short-term “knee-jerk pump” in spot prices and volatility, suggesting it may present an opportunity to fade such fluctuations. Related Reading: Court Says Yes To Binance Request In Case Against SEC It is important to note that the ruling does not equate to approval of Grayscale’s application nor guarantees approval for the refilling of GBTC. The SEC still holds the authority to reject the refilling on new grounds.  However, QCP Capital believes that the ruling solidifies the likelihood of an eventual approval for a Bitcoin spot exchange-traded Fund (ETF) while increasing the probability that the SEC will defer the decision to the March 2023 final deadline. What’s concerning, is that QCP Capital’s wave count analysis, previously shared in their update two weeks ago, suggests that a final push higher to conclude the B wave correction is probable in the coming weeks.  This, coupled with positive developments in the Artificial Intelligence (AI) sector led by companies like NVIDIA and recent strength in traditional proxies such as Gold and Rates, creates a more favorable environment for cryptocurrencies. Despite these positive factors, QCP Capital anticipates a potential Q4 2023 start near the market lows. They attribute this to fading optimism surrounding the spot ETF due to SEC delays and a perceived lack of innovation within the cryptocurrency sector compared to other technology sectors.  Additionally, the upcoming Mt. Gox payout is expected to exert short-term bearish pressure on the market. However, QCP Capital remains optimistic about a significant rally in Q1 of 2024. They anticipate the likely approval of the ETF in March, coinciding with the upcoming Bitcoin halving in April, and a potential US economic slowdown in Q2.  To capitalize on this outlook, the firm suggests considering a topside end March 2024 option structure, which offers limited loss and the potential for a substantial payout if the bullish scenario unfolds. Bitcoin Faces Downside Pressure According to Material Indicators, a prominent analysis firm’s algorithmic models, called Trend Precognition, indicate a downside trend on multiple timeframes for Bitcoin (BTC).  The Daily chart, which closes in less than 9 hours, the Weekly chart, which closes in 3 days, and the Monthly chart, which closes in less than 9 hours, all point towards a potential test of support shortly. Related Reading: Dogecoin And Bitcoin Become Latest Additions To Robinhood Wallet Per the firm’s analysis, the Weekly signal would be invalidated if BTC’s price moves and holds below the $25,350 level. However, if support holds above the lower low (LL) at $24,750, it would provide a solid foundation for a potential rally and a retest of resistance. Overall, both QCP Capital and Material Indicators concur that the analysis points towards continuing Bitcoin’s current downtrend in the short term.  Presently, Bitcoin is trading at $26,100, reflecting a 3% decline over the past 24 hours. The upcoming days will reveal whether these projected scenarios materialize or if the cryptocurrency manages to consolidate at its current level, resulting in sideways price action. Featured image from iStock, chart from TradingView.com