Blockchain

Despite an array of uncertainties that have dotted the crypto horizon, recent data from Coinshares reveals a continuous faith in the sector, especially the foremost crypto giant, Bitcoin.

Digital asset investment products have seen a steady and positive trend, recording net inflows for three weeks. Amid these inflows, Bitcoin emerges as the most dominant, presenting a robust case for its standing in the market.

Bitcoin Steers The Inflow Wave

According to the latest report by CoinShares, Bitcoin-centric products experienced inflows amounting to $16 million just in the past week. This surge has swelled the year-to-date inflows, positioning them at $260 million. CoinShares’ data also shed light on inflows into Short-Bitcoin funds, which amounted to $1.7 million.

However, the report reveals that the recent data might not reflect the aftermath of the SEC’s decision not to appeal against the Grayscale legal challenge. James Butterfill, the Head of Research at CoinShares, noted:

It is worth noting that our data, which is as of Friday’s close, was unlikely to capture the positive news out of the US regarding the SEC not appealing the Grayscale legal challenge, potentially paving the way for a spot-based ETF in the US.

While Bitcoin held its ground, other cryptocurrencies also showcased noteworthy movements. Solana’s investment products added roughly $3.7 million, building upon the $24 million from the previous week.

XRP maintained momentum, recording its 25th week of positive inflows with an additional $420,000. Butterfill highlighted the continuous support from the “investment community” for XRP, especially in light of the recent “successful legal challenges” against the US Securities and Exchange Commission (SEC).

However, it wasn’t all sunshine and roses. Ethereum funds witnessed a setback, with outflows of $7.4 million. This seemed to neutralize most inflows after the launch of six Ethereum futures exchange-traded funds (ETFs) the previous week.

Butterfill pointed towards potential “protocol design concerns” as a plausible reason. Other digital assets such as Litecoin, Chainlink, and Tezos also witnessed minor outflows of $280,000, $310,000, and $250,000, respectively.

Global Inflow Dynamics

Regarding the global distribution of these inflows, Germany stood out, accounting for the bulk of the week’s inflows with $16.1 million. The US and Canada followed suit, with inflows of $2.1 million and $3.5 million respectively.

Interestingly, Sweden was the only European nation to witness an outflow of $7.5 million. Butterfill states that despite this positive net inflow trend, “trading volumes remain 27% below the 2023 average.”

Regardless, Bitcoin, which led the pack in last week’s inflow, experienced a dramatic shift in recent hours. Specifically, the asset witnessed a swift surge above $30,000, propelled by an unsubstantiated rumor by Cointelegraph about the US Securities and Exchange Commission (SEC) approving a spot BTC ETF. The regulator debunked the rumors. 

However, the crypto quickly retraced its steps once the rumor was debunked, particularly by a FOX Business reporter.

BlackRock has just confirmed to me that this is false. Their application is still under review. https://t.co/XIfIWZ0Ule

— Eleanor Terrett (@EleanorTerrett) October 16, 2023

At the time of writing, Bitcoin is trading at $28,049, still exhibiting bullish behavior with a 4.3% increase in the last 24 hours.

Featured image from Unsplash, Chart from TradingView

Tether, the world’s largest stablecoin company, has reaffirmed its commitment to combating cryptocurrency-funded terrorism and warfare by collaborating with law enforcement agencies worldwide. 

The company has frozen 32 addresses containing $873,118.34, allegedly linked to illicit activities in Israel and Ukraine. 

Tether Collaborates With Global Law Enforcement

According to a blog post on October 16, Tether has played a significant role in assisting 31 law enforcement agencies across 19 jurisdictions, freezing $835 million in assets primarily associated with thefts from blockchain and exchange hacks. 

The company’s collaborations span various countries, including Brazil, Singapore, Germany, Canada, Argentina, China, Ukraine, and the United States. By actively engaging with authorities, Tether aims to contribute to the fight against cybercrime and ensure stolen funds are returned to legitimate users. The company further stated: 

Of this, Tether has frozen 32 addresses, containing $873,118.34, that were found to be linked to illicit activity in Israel and Ukraine. Tether has been working with the NBCTF in Israel to counter cryptocurrency-funded terrorism and warfare.

The ability of Tether to freeze and return illicitly obtained funds highlights the traceability and transparency of blockchain transactions. Contrary to common misconceptions, cryptocurrency transactions are not anonymous; they are meticulously recorded on the blockchain, allowing for the tracking and tracing of fund movements. 

CEO Stresses Traceability

The recently announced CEO of Tether, Paolo Ardoino, emphasized that criminals using cryptocurrencies for illegal activities will inevitably be identified. Ardoino stated: 

Tether remains committed to promoting responsible blockchain technology use and standing as a robust defense against cybercrime. We eagerly anticipate continued collaboration with global law enforcement agencies as part of our commitment to global security and financial integrity.

While Tether’s actions demonstrate the industry’s capacity to combat criminal use effectively, some critics within the blockchain industry continue to scrutinize the crypto sector, often neglecting to address the slow or inadequately equipped traditional financial system’s role in combating criminal funding. 

On this matter, Tether’s CEO emphasized the importance of recognizing the traceability and trackability of blockchain transactions, which serve as potent deterrents to illicit activities.

As the stablecoin company behind USDT continues to collaborate with law enforcement agencies globally, the company’s efforts highlight the potential of blockchain technology to enhance financial security and integrity. 

The traceability of transactions provided by blockchain technologies offers a robust defense against cybercrime and illicit financial activities.

As the fight against cybercrime intensifies, continued collaboration between cryptocurrency companies and law enforcement agencies will play a crucial role in ensuring the integrity and stability of the digital asset space.

Featured image from Shutterstock, chart from TradingView.com 

The Shiba Inu ecosystem has started out the new week on a particularly positive note. The burn rate, which is a community initiative to reduce the massive supply of the token, has seen a significant jump as the price of the meme coin has recovered.

SHIB Burn Rises 233%

A Monday report by Shiba Inu burn tracking website Shibburn showed that the SHIB burn rate has seen an impressive 233% climb. This puts a turn on the particularly slow weekend which saw burn rates decline rapidly.

As the new trading week opens up, the total SHIB tokens burned during this time has crossed 56.98 million. This was the result of tokens being sent to the burn address across 29 addresses, with more than 3.7 million tokens sent to the burn address in the last hour as of the time of this writing.

The token burn also led to an increase in the burn rate for the last week as well. Monday’s burn figures saw the weekly burn total rise above 316.7 million. This is a 26% increase in the burn rate compared to the previous seven days.

Some of the largest burns came from the ‘0x909a9’ and ‘0x4be2’ addresses. Both addresses burned a total of 7,119,784 million and 8,095,490 million tokens respectively. The total comes out to over 15 million tokens, accounting for around 27% of the total burns for the day.

Shiba Inu Sees Price Recovery

On Sunday, the price of Bitcoin surged toward the $28,000 level, and in response, the rest of the crypto market followed the flagship cryptocurrency. Shiba Inu was no different and finally saw a reversal in its bull stretch since the month began.

Shiba Inu rose around 1.24% in the 24-hour period and although this is not as impressive as some of the recoveries mounted by other assets, it has helped the cryptocurrency to secure its support at $0.000007. This gives bulls some wiggle room as they regain their bearings in the market.

However, Shiba Inu is still seeing small losses of 0.59% on the weekly chart. This suggests that the bulls’ hold on the asset is weak and bears could regain control if momentum slips. This battle for control is mirrored by the daily trading volume of the crypto which is up 25.85% and sitting at $101.7 million, according to data from CoinMarketCap.

So far, there doesn’t seem to be any special event pushing the price of SHIB besides the Bitcoin recovery. Given this, if the Bitcoin rally ends, then SHIB will most likely follow and fall into losses again.

Bitcoin price just made one of its most volatile moves in some time on the back of what has amounted to be fake news regarding the approval of the BlackRock iShares spot BTC ETF.

Within seconds of a fake X post, BTCUSD surged by over 7% in ten minutes – only to retrace the entire rally and then some.

Bitcoin Price Rejected As iShares ETF News Revealed To Be False

No, BlackRock’s iShares spot Bitcoin ETF has not been approved. But that’s what was just making waves around social media, especially Elon Musk’s X platform.

Within the ten minutes following the phony report from CoinTelegraph, BTCUSD soared by more than 7%  and almost $2,000. The top cryptocurrency by market cap, however, was stopped at $30,000 and rejected all the way back down to below $28,000 in the following fifteen minutes once the news was disproven.

Fox Business journalist Eleanor Terrett claims to have spoken to a representative for BlackRock directly, who confirmed that the iShares application is still under review with the United States SEC. CoinTelegraph has since deleted the tweet (pictured below).

The situation shows that the market has serious pent up energy that is ready to release the moment a spot ETF is approved. But it also could demonstrate to the SEC exactly why a spot ETF shouldn’t be approved when crypto prices are subject to such blatant manipulation through the media.

While a spot ETF is inevitable at this point, today’s news has now repeatedly been confirmed to be false.

Data shows the crypto futures market has observed large liquidations in the past day as Bitcoin has recorded a sharp surge towards $28,000.

Crypto Futures Observed $78 Million In Liquidations In Last 24 Hours

A crypto futures contract is said to be “liquidated” when the derivative exchange with which said contract is open forcefully closes it up. This happens when the contract has accumulated losses of a certain percentage, the exact value of which may differ between platforms.

In this sector, it’s not too rare to see a flood of such liquidations occurring within a short span of time. The reason behind that is the high volatility that most of the assets display on average.

A lot of investors also like to play with extreme amounts of leverage, due to it being readily accessible in many platforms. Leverage alone can raise the risk of liquidation manyfold, so it combined with the high volatility can make it easy for contracts to be flushed down.

During the past day, the crypto market has once again seen some notable volatility, which has led to another mass liquidation event on the futures side, as the data below from CoinGlass shows.

As is visible from the table, the crypto market as a whole has seen liquidations of more than $78 million in the last 24 hours. Out of these, $61.88 million involved the short contracts, equivalent to almost 80% of the total.

This naturally makes sense, as this latest liquidation squeeze has been led by a rally in Bitcoin’s price.

As displayed above, Bitcoin has enjoyed a sharp surge in the past day. At the peak of this rally, the coin had retested the $28,000 level but has since seen a bit of pullback.

The rest of the sector also followed the original crypto in this rally (as is usually the case), which is why shorts around the sector have taken a beating today. The below table shows what the individual contribution towards this liquidation squeeze has looked like for the different symbols in the sector.

As expected, Bitcoin occupies the largest share of liquidations with $31.5 million, while Ethereum is second at $13.06 million. Interestingly, Loom Network (LOOM) is third in this list, despite the asset being just the 71st largest in the sector by market cap.

The altcoin has enjoyed a sharp rally of more than 113% in the past week, which is perhaps why the crypto has had such strong interest behind it on the futures market.

Bitcoin Open Interest Has Rebounded Since The Squeeze

As CryptoQuant analyst Maartunn has pointed out, the Bitcoin open interest, a measure of the total amount of contracts associated with the asset currently open on the futures market, has jumped back since the liquidation flush occurred.

It would appear that more speculators have jumped on the market even after seeing a large amount of traders getting liquidated. Generally, the open interest being high can lead to volatility, so the indicator retracing back to its levels from before the plunge could mean BTC would soon see more sharp price action in the near future.

Much has changed since Litecoin launched in 2011 with a maximum supply of 84 million LTC as a silver to Bitcoin’s gold. The crypto recently completed its third halving in August, finally reducing the number of LTC miners receive as a reward for mining a block from 12.5 LTC to 6.25 LTC. 

Over the past 12 years, much of this supply has been distributed to miners as block rewards for verifying Litecoin transactions. At the time of writing, there are 73.76 million LTC in circulation, with data showing this supply concentrated among large holders. 

Estimates from the crypto analysis platform IntoTheBlock show that over 49% of LTC is held by accounts with more than 0.1% of the circulating supply. BitInfoCharts also puts addresses with more than 100,000 LTC having 38.01% of the total supply.

Source: IntoTheBlock

Who Are the Biggest Litecoin Wallet Holders Today?

Litecoin’s 84 million total supply has been distributed over the past 12 years through mining rewards and market trading. The biggest wallet addresses include large miners that have accumulated Litecoin from years of mining and crypto exchanges. Charlie Lee, its creator, claims to have sold or donated all LTC tokens in his collection.

The honor of the biggest Litecoin wallet address belongs to “M8T1B”, accounting for 3.34% of the entire supply in circulation. This wallet holds 2,504,667 LTC worth $158,105,141 at the current market price. 

Next is “ltc1qr” holding 2,225,000 LTC worth $140,451,374. Wallet addresses “MQd1f” and “ltc1qn” comes third and fourth in rankings, holding 1,344,464 LTC and 1,097,050 LTC worth $84,868,217 and $69,250,423 respectively. According to data from BitInfoCharts, these top four addresses hold 8.18% of the total coins in circulation.

Other top-ranking whales include addresses “ltc1q2” and “MQSs1,” with 927,542 LTC ($58,550,373) and 745,000 LTC ($47,027,540), respectively. Looking through the data shows these six addresses are the Litecoin blockchain whales holding more than 1% of the circulating supply. Metrics from IntoTheBlock put the total concentration of these whales at 11.88% (8.84 million LTC).

Wallets “MB8nnF”, “MFULdM,” “MESruS,” and “LZEjck” complete the top 10 rankings with 513,259 LTC, 472,674 LTC, 416,688 LTC, and 394,044 LTC, respectively. 

What Does Litecoin’s Supply Distribution Mean for the Future?

There seems to be a dull market movement with the whales as sellers continue to maintain control over the market. As a result, the inflow to wallets holding at least 0.1% of the circulating supply has decreased by 91.07% in the past three months.

Source: IntoTheBlock

With 87% of LTC already mined, the rate of new supply will slow down over time. This could support price stability and sustainability. Litecoin is currently trading at $63.07, and like all cryptocurrencies, and pseudonymous crypto analyst P_S_trade predicts Litecoin can push up to $84 very soon. 

According to historical data compiled by crypto analyst Tony “The Bull”, Litecoin has always retraced 70% in the weeks following its past halvings. However, the recently concluded halving event may present a different narrative.

Litecoin is currently trading in a range since last week and is seeking to extend its gains of 2.35% over the past 24 hours. 

Renowned crypto analyst Egrag presented a compelling Elliott Wave analysis on the potential XRP price trajectory in a tweet today. Drawing attention to the inner workings of the Elliott Wave theory, he highlighted that XRP has entered Wave 3 in recent days, which in particular plays a transformative role in determining the course of asset prices.

In Egrag’s words: “XRP aiming to $27 – Wave 1 inside Wave 3: Diving into the Elliott Wave theory as we explore the potential for XRP to reach $27! Wave 3 is typically a game-changer in the Elliott Wave theory.”

Elliott Wave Analysis: Wave 3

The crypto analyst further elaborated that Wave 3 emerges as the trend’s dominant force, outshining other waves in size and influence. This stage often witnesses positive news that prompts fundamental analysts to revise their outlook, giving a boost to upward momentum.

Notably, prices tend to shoot up rapidly during this phase, with minimal corrections. Investors who try to enter the market on a pullback often find themselves missing out as the third wave gains traction. At the outset, pessimistic news might still dominate, with most market participants maintaining a bearish stance. However, as Wave 3 unfolds, a significant shift towards bullish sentiment becomes evident among the majority.

Deep-diving into the XRP analysis, Egrag points out that the green wave count reflects the Grand Cycle spanning from 2014 to 2018. This cycle commenced with Wave 1 and was succeeded by a corrective Wave 2. “Presently, XRP finds itself amidst the thrilling currents of Wave 1 within the Grand Cycle’s Wave 3. Prepare for a fascinating journey ahead!” he noted.

He further elucidated that XRP has adeptly navigated through the initial waves and is now setting its course for the anticipated Wave 3, which he predicts will touch the Fibonacci 1.618 mark at $6.5, followed by a brief correction. The subsequent and concluding phase, Wave 5, according to Egrag’s analysis, will propel the XRP price to a staggering $27.

A Deep-Dive Into Egrag’s XRP Price Chart

Egrag’s analysis delineates the intricate voyage of the XRP price through the conceptual lenses of the Elliott Wave theory. The chart starts its narrative in March 2020, when the subordinate Wave 1 began. This initial phase witnessed XRP escalating to a prominent peak of $1.96, buoyed by a favorable outcome in Ripple’s legal battle with the US Securities and Exchange Commission (SEC).

Subsequent to the apex of Wave 1, the chart navigates through a territory marked by correction, which is dubbed Wave 2. In this segment, the XRP price experienced a pullback and dropped to a low of $0.4313. This corrective phase, although incisive, respects the sanctity of Elliott wave norms by not falling below the initial point of Wave 1.

With the transition into the Wave 3 area, bullish momentum is currently starting to build up. Egrag, with a combination of analysis and foresight, expects the XRP price to rise beyond the zenith of Wave 1 and target the Fibonacci extension of 1.618, valued at around $6.57. This upside, plotted on Egrag’s chart, is expected to end sometime in 2024 or 2025.

Wave 4, as described by Egrag, provides for a corrective move following the upswing of Wave 3. At this point, the XRP price is expected to drop heavily and find support at $1.96, which interestingly mirrors the peak of Wave 1.

In Egrag’s chart, Wave 5 emerges as the pinnacle of the bull market. In this decisive phase, the analyst projects his most audacious forecast for the XRP price trajectory. Anticipating a monumental bull surge in 2025, he envisions XRP oscillating between Fibonacci extension levels of 2.272 and 2.414, corresponding to price points of $23.63 and $31.20. Egrag, averaging the values, subsequently forecasts a price target of $27 for XRP.

At press time, XRP traded at $0.4934.

XRP, the cryptocurrency at the center of a high-stakes legal clash between Ripple and the US Securities and Exchange Commission (SEC), has remained under the cloud of uncertainty, with its price trajectory impacted by the twists and turns of the legal battle. 

Ripple, the company behind XRP, celebrated a legal win when a court ruled that XRP was not a security, providing a temporary reprieve for the embattled cryptocurrency. Nonetheless, market participants are acutely aware that the final resolution of this case could hold the key to XRP’s future value and trajectory.

Recent analysis of the XRP price chart suggests a potential shift in the market sentiment, indicating that XRP might be on the cusp of an upward trend after a prolonged period of decline spanning over three months. 

XRP Current Support Level As Short-Term Optimism

The examination of the recent price movements has unveiled a critical finding—XRP has gravitated towards a pivotal support level, steadfastly hovering around the $0.473 mark. Market observers are closely monitoring this level, recognizing its significance in determining the short-term trajectory of the cryptocurrency. 

Historically, such support levels have proven instrumental in preventing further plunges, acting as a barrier against steep declines. A sustained position above this critical line could signal the presence of a strong buying interest, potentially fueling an optimistic outlook for XRP.

However, a concerning element has emerged from the analysis of the price chart—the ominous “death cross” phenomenon, which has been looming on the horizon. In technical analysis, the death cross occurs when a security’s short-term moving average crosses below its long-term moving average, suggesting a potential bearish turn for the asset. 

XRP enthusiasts and traders are now closely scrutinizing this development, cautiously considering its implications for the future price movements of the cryptocurrency.

XRP’s Resilience Amid Legal Uncertainty

Meanwhile, a closer examination of the volume bars presents a more nuanced perspective. These bars represent the volume of XRP traded on specific days, offering insights into the buying and selling patterns associated with the cryptocurrency.

Despite the tumultuous legal environment and the price fluctuations, the volume bars do not reflect an overwhelming surge in selling volumes, providing a glimmer of assurance for XRP holders and market participants. 

As of the latest market data, the current XRP price, as per CoinGecko, stands at $0.482482, showcasing a 24-hour gain of 1.4% despite a seven-day loss of 4.2%. These fluctuations, though reflective of the ongoing market volatility, underline the resilience of XRP in the face of the regulatory storm, as well as the cautious optimism brewing among traders anticipating a potential upward shift. 

While the legal battle continues to cast its shadow over XRP, market participants remain cautiously optimistic, eagerly awaiting further developments that could shape the future trajectory of this resilient cryptocurrency.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Shutterstock

As analysts continue to debate the future of the flagship cryptocurrency, Bitcoin, the network’s hashrate has seen exponential growth, with this key indicator poised to experience an 100% increase (from the beginning of the year) before the year runs out. 

How Bitcoin’s Hashrate Has Grown

The hashrate, which is used to measure the computational power used to mine and process transactions on the network, currently (at the time of writing) stands at 445 exahashes per second (EH/s). This figure represents a significant increase, considering that the network hashrate stood at 255 EH/s on January 1, 2023. 

These figures mean that the network hashrate has grown by 190 EH/s since the year began, and at this rate, it could well hit 510 EH/s by the end of the year, signaling a 100% increase from when the year began. These figures also suggest that more miners have jumped on the Bitcoin blockchain, with it being faster and more secure as a result of this. 

At this rate, the hashrate could also well be on the way to fulfilling some of the predictions made by analysts. In March, A research analyst at River Financial, Sam Wouters, noted the impressive growth rate and predicted that Bitcoin’s hashrate could reach a “Zettahash by the end of 2025.” A Zettahash is equivalent to 1,000 EH/s.

Going by this current rate, some have noted that Wouters’ prediction could become a reality by December 23, 2025, or the beginning of 2026.

Despite this significant growth rate, it is worth mentioning that Bitcoin’s hash price has remained rather tepid during this same period. Hash Price refers to the revenue generated by miners on a per tera-hash basis. 

The hash price currently stands at close to $60, almost the same figure as at the beginning of the beginning of the year. Notably, Miners’ biggest payday came on May 8, 2023, when the hash price was $125. 

Where The Bitcoin Hashrate Is Coming From

In his tweet back in March, Wouters also tried to analyze where the growth in Bitcoin’s hashrate could be coming from. He shared his belief that it was unlikely that the added hashrate was coming from nation-states, as some people may suggest. According to him, the odds of nation-states providing computing power to the network and remaining a secret is low as “there are far too many people involved in running massive operations.”

He concluded by stating that the source of the added hashrate was “nuanced” as it could simply be a result of factors like new models being put on the market, unused inventory going online, more facilities going live, and also entrepreneurs who are finding cheap sources before regulators step in. 

Shiba Inu (SHIB) holders are not exempt from the turbulence of the market in recent weeks. Analyzing the current state of affairs for holders of the meme coin, it becomes apparent that the profitability of investing in this particular asset type has been a rollercoaster journey. 

Data derived from IntoTheBlock, an analytics firm, reveals a striking fact: a mere 9% of the current SHIB holders find themselves in a profitable position at the current value of roughly $0.0000069 per coin. This figure is indicative of the challenges that many SHIB investors are currently grappling with.

Moreover, an additional 1% find themselves at a break-even point, while a staggering 91% face the harsh reality of being at an overall loss.

Shiba Inu’s Price Plunge: A Tale Of Highs And Lows

One of the key contributing factors to this landscape of varying profitability is the undeniable influence of Shiba Inu’s price volatility and the composition of its holder base.

Over the past few months, SHIB’s market value has been subject to dramatic oscillations, largely propelled by substantial trading volumes. This volatility has undoubtedly played a pivotal role in shaping the current financial positions of SHIB holders. 

It is also worth noting that an overwhelming 78% of the circulating supply of SHIB is concentrated within the wallets of the so-called ‘whale’ holders, emphasizing the significant influence of a few major players within the SHIB ecosystem.

The plunge of Shiba Inu’s price, a staggering 92% drop from its all-time high of $0.00008616 in October 2021, has left many investors who bought at or near peak prices in a precarious position, facing significant losses. However, on the flip side, those who entered the market at relatively lower prices are potentially reveling in the positive returns yielded by their investments. 

At the time of writing, SHIB’s price stands at $0.00000700, as per CoinGecko, showing a 1.2% gain over the past 24 hours, though still nursing a 1.0% loss over the past seven days. 

Can Shiba Inu Overcome Resistance?

Despite the apparent challenges faced by SHIB holders, a glimmer of hope emerges from the analysis of the price trends. It is evident that every significant dip in SHIB’s value is consistently followed by a period of recovery, creating what appears to be a repetitive “zig-zag” pattern. 

This pattern is indicative of a healthy correction process, a natural phenomenon within the realm of cryptocurrency markets. It speaks to the resilience of SHIB and its ability to bounce back from adversities, offering a ray of optimism amidst the prevailing uncertainty.

Furthermore, the current market dynamics suggest that SHIB is grappling with a local resistance level, posing a formidable challenge to its upward trajectory. The interplay of reduced activity among the whale holders and the ongoing battle to overcome this resistance level implies that if SHIB manages to break through this barrier, a bullish trend could be on the horizon. 

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Shutterstock