Из жизни альткоинов

Гонконгская венчурная компания Animoca Brands при участии Opal Protocol и Saakuru Labs запускает токен BLIF. Эмитент обещает, что это будет нативная монета экосистемы Web3-игр, развлечений и децентрализованных финансов в сети Биткоина.

Специалисты аналитической компании Elliptic объявили, что начали использовать алгоритм глубокого обучения для идентификации случаев отмывания средств через биткоины. Новый метод проверили на данных о транзакциях одной из крупных криптобирж.

Прокуратура северного округа штата Калифорния предъявила обвинения трем бывшим топ-менеджерам компании-криптокредитора Cred. По версии следствия, должностные лица принимали участие в сговоре с целью мошенничества и отмывания средств клиентов.

In a rather shocking development, Grayscale Bitcoin Trust (GBTC) has recorded its first-ever inflow after witnessing significant daily outflows since its launch. 

Grayscale Bitcoin ETF Records Over $60 Million In Inflows

Grayscale’s Spot Bitcoin ETF has finally broken its 82-day streak of outflows since its launch on January 11, 2024. GBTC saw its first day of inflows on May 3, after witnessing approximately $17.46 billion in outflows. 

According to data from Farside, an investment management firm, Grayscale’s Spot Bitcoin ETF had amassed inflows of about $63 million, alongside other Bitcoin ETFs like BlackRock’s iShares Bitcoin Trust (IBIT) which had inflows of $12.7 million. 

The total inflows recorded in that single day amounted to approximately $378.3 million, with Franklin Templeton’s Spot Bitcoin ETF, EZBC, leading the pack with the highest inflows of $102.6 million. 

Expressing disbelief at Grayscale’s turnaround, Bloomberg senior analyst and ETF expert, Eric Balchunas remarked that he had to make thorough verifications to confirm the unexpected development. 

Moreover, the surprising influx comes after a recent occurrence which saw 10 US Spot Bitcoin ETFs, including BlackRock’s IBIT, collectively recording enormous outflows worth over $563.7 million in a single day. These outflows were possibly triggered by the Federal Reserve’s (FED) decision to keep rates unaltered, resulting in a broader downturn in the crypto market. 

BTC had also experienced significant declines around the same time, however, currently the cryptocurrency is up by 6.36% in the past 24 hours, jumping above $60,000 support levels to trade at $63,175, according to CoinMarketCap. 

Factors Behind GBTC’s Massive Outflows

Grayscale saw its first recorded inflow after experiencing hundreds of millions worth of daily outflows since its inception. The asset management firm’s Spot Bitcoin ETF had also experienced its highest outflow of approximately $589.9 million on February 29. 

Various factors have contributed to GBTC’s daily outflows, including its exorbitant annual management fee of 1.5%. Compared to all 12 Spot Bitcoin ETFs in the United States (US), Grayscale has the most expensive Spot Bitcoin ETF fee, exceeding even BlackRock, the second largest BTC ETF provider, which has an average annual management fee of 0.25%. 

Some of Grayscale’s outflows were also a result of a reported selling connection with insolvent crypto exchange, FTX and other defunct cryptocurrency companies. FTX had sold about $1 billion worth of GBTC while Genesis, a cryptocurrency brokerage for institutional investors had sold almost 36 million shares in GBTC to purchase 32,041 BTC worth more than $2.1 billion. 

Shiba Inu has scored another major listing as PayPal users within the United States can now buy the dog-themed cryptocurrency through MoonPay, opening up new avenues for adoption and potentially fueling a price increase. 

PayPal Teams Up With MoonPay For Shiba Inu Access

American multinational financial technology company PayPal has made a strategic partnership with MoonPay, a crypto payment platform, allowing US users to access cryptocurrency assets like Shiba Inu. MoonPay made the exciting announcement on X (formerly Twitter), revealing that PayPal can now offer seamless fiat-to-crypto transactions within the US. 

The integration of MoonPay’s services into PayPal marks a significant milestone in the democratization of cryptocurrencies in the US. MoonPay has disclosed that it will allow PayPal users to purchase over 110 cryptocurrencies, including doggy-themed cryptocurrency, Shiba Inu. 

Through the collaboration, millions of users in all 50 states of the US will be exposed to Shiba Inu tokens, presenting a step forward in the cryptocurrency’s vision for mainstream adoption. This could in turn potentially drive up the price of the cryptocurrency as it attracts new investors from different parts of the country. 

Moreover, after the announcement of the partnership, the price of Shiba Inu surged considerably. The cryptocurrency jumped from $0.000022 to $0.000024 in just a day, increasing by 7.72% over the past 24 hours, according to CoinMarketCap. 

MoonPay has outlined the process for users to access its extensive library of cryptocurrencies via PayPal, disclosing that new MoonPay users with a PayPal account can seamlessly conduct online cryptocurrency transactions.

The crypto payment platform disclosed that PayPal users can fund their crypto accounts through different channels including direct bank withdrawal, PayPal balance, and debit card. 

Welcoming the pivotal partnership, MoonPay’s co-founder and Chief Executive Officer (CEO), Ivan Soto-Wright, emphasized the importance of the alliance, aimed at facilitating broader cryptocurrency adoption within familiar ecosystems.

He disclosed that MoonPay’s integration into PayPal underscores the crypto platform’s deep commitment to expanding access to cryptocurrencies through trusted networks.

MoonPay Set To Transform PayPal Crypto Access

Including Shiba Inu, MoonPay will also grant PayPal users within the US access to top cryptocurrencies like Solana (SOL), Ethereum (ETH), Dogecoin (DOGE), Bitcoin (BTC), and others. Additionally, the crypto service platform has revealed that other crypto assets initially available on its platform such as Pepe (PEPE), Cosmos (ATOM), Toncoin (TON), Binance Coin (BNB) and a few more, will not be accessible to US users. 

MoonPay has also revealed key benefits it will be offering PayPal through its crypto services, including flexible payment methods, an extensive variety of cryptocurrencies, seamless onboarding, transactional speed, and other user-friendly features.

Furthermore, the crypto platform has hinted that in the third quarter (Q3) of 2024, it plans to integrate PayPal into its partner networks, expanding opportunities for the adoption of cryptocurrencies like Shiba Inu, which could potentially boost the token’s value. 

Featured image from Pexels, chart from TradingView

The foremost meme coins, Dogecoin (DOGE) and Shiba Inu (SHIB) have recorded significant price gains in the last 24 hours. This upward trend is due to several metrics that signal a bullish outlook for the respective meme coins. 

Dogecoin Sees Increased Interest From Investors

Data from the on-chain analytics platform IntoTheBlock shows that the number of new and active Dogecoin addresses has increased by over 74% and 21% in the last seven days, respectively.

IntoTheBlock further revealed in an X (formerly Twitter) post that over 28,000 new Dogecoin addresses were created on May 2, a 102% increase from its monthly low, set on April 29. 

Market intelligence platform Santiment also highlighted Dogecoin’s network growth in a recent X post, noting that it has seen the second-largest growth in the last six months (only behind Bitcoin). The platform revealed that Dogecoin has seen its number of non-empty wallets increase by 27% to 6.6 million during this period. 

Meanwhile, data from Coinglass shows that trading activity in Dogecoin’s derivatives market has also increased. Specifically, the meme coin’s open interest (OI) funding rate is positive again, currently at 0.0021%. This indicates that the bulls are back and that there is a bullish sentiment towards Dogecoin. 

Further data from Coinglass shows that Dogecoin’s spot trading volume has increased in the last 24 hours. This indicates more investors are accumulating the meme coin ahead of a more parabolic price surge.

This was to be expected as Bitcoinist recently reported that Dogecoin had entered a major accumulation zone, which presented an excellent opportunity to buy the dip.

Shiba Inu’s On-chain Metrics Turn Bullish

Data from IntoTheBlock shows that most of Shiba Inu’s on-chain metrics are bullish again which explains why the meme coin’s price has recently surged.

One of these metrics is large Shiba transactions, which have increased by 3.40% these past few days. This suggests that Shiba Inu whales are currently accumulating the meme coin. These whales play a crucial role and can help drive Shiba Inu’s price higher. 

Shiba Inu’s price also looks to be finally reacting to its fundamentals, which paint a bullish outlook for the meme coin. Bitcoinist recently reported that Shiba Inu’s decentralized exchange (DEX) would now operate on Shibarium (and Ethereum), a development that could fuel leaps in the meme coin’s price. 

From a technical analysis perspective, Shiba Inu also looked well primed for these price gains as crypto analyst Ali Martinez revealed a bull flag that had formed on the meme coin’s chart. The analyst noted that Shiba Inu could experience a breakout, sending its price to $0.000072323.

At the time of writing, Dogecoin and Shiba Inu are trading around $0.1497 and $0.00002473, up over 12% and 7%, respectively, in the last 24 hours, according to data from CoinMarketCap. 

Featured image from  @YOKOKIKUCHI_KS / CATERS NEWS, chart from TradingView

On Wednesday, ETH, the native coin of the Ethereum blockchain experienced a significant rejection at the resistance level of $2,871. Since this rejection, the price of Ethereum has gained a significant upward movement of over 9% and showing signs of even moving further.

At the time of writing, the price is still showing strong signs of moving upward toward the 100-day Simple Moving Average (SMA) and the trendline, both in the 4-hour and the 1-day timeframe. The price of ETH is currently trading around $3,116 and about 0.47% up in the last 24 hours.

A Further Look At The Ethereum Chart With The Following Technical Indicators

100-Day Moving Average and Trendline: As seen in the image below, although the price of ETH is currently moving toward the 100-day simple moving average and the trendline, it is still trading below these two indicators. This means at a certain point, the price of Ethereum could make a possible reversal and continue in its movement toward the downside.

The RSI Indicator: Also observing the chart with the help of the Relative Strength Index Indication (RSI), it shows that the RSI signal line is trending above the 50 line which strongly indicates that the price might still move upward, as seen in the chart.

The 4-Hour MACD Indicator: After a close look at the MACD indicator in the 4-hour timeframe, it can be seen that the MACD histogram has moved above the zero line. Also, the MACD line and the signal line have crossed and are heading toward the zero line. This suggests there may be sustained upward price movement until a potential reversal.

Final Thought On ETH Movement

Based on Ethereum’s previous movement, there are two resistance levels of $3,250 and $3,355, and a support level of $2,819. As the price of Ethereum is moving upward, if it manages to break above the resistance level of $3,250, it might continue to move even further toward the $3,355 resistance level. 

On the contrary, if Ethereum fails to break its previous resistance level, it might reserve and start a move downward toward its previous support level of  $2,819. Should ETH succeed in breaching this level of support, it may descend even further to establish a new low.

Friend.tech, a social media platform built on the Ethereum blockchain, aimed to celebrate the launch of its version 2 protocol with an airdrop of its native token, FRIEND. However, the well-intentioned initiative turned into a cautionary tale, with the token’s price experiencing a dramatic nosedive and user frustration reaching a fever pitch.

Friend.tech: Building A Social Network On Blockchain

Launched in 2023, Friend.tech positions itself as a Web3 social media platform that leverages blockchain technology to foster a more “authentic” and “decentralized” online experience.

The platform utilizes a unique “key” system, where users gain access through exclusive invites. These “keys” are essentially social tokens built on the ERC-20 standard, allowing communities within Friend.tech to establish their own governance and economic structures.

FRIENDly Faux Pas: Airdrop Chaos And Price Plunge

On May 3rd, Friend.tech airdropped FRIEND tokens to its user base in conjunction with the version 2 protocol rollout. Initial excitement was quickly dampened as the token’s price exhibited a dizzying rollercoaster ride. Soaring to a high of $167 shortly after launch, FRIEND then plummeted to a value under $2 within a matter of hours.

“It’s free money bro why is CT upset”

Um, it wasn’t? Users paid $60 million in fees, and $30 million(!!!) of that was extracted by Friendtech.

So collectively, users paid $30m in farming costs for a token that has a liquidity pool of only $3m ETH liquidity… pic.twitter.com/aCrpmVUaNQ

— Average Joe’s Crypto (@AvgJoesCrypto) May 3, 2024

Analysts point to two primary culprits behind the crash: liquidity issues and a sell-off frenzy. Friend.tech’s initial liquidity pool, the readily available funds for buying and selling tokens, appears to have been insufficient to handle the trading volume.

This lack of liquidity meant that even small sell orders had an outsized impact on the price, pushing it down rapidly. Further exacerbating the situation, a significant number of users who received airdropped tokens opted to sell them immediately, likely capitalizing on the initial price spike. This mass sell-off further depressed the price, creating a vicious cycle.

pic.twitter.com/6ejMbaCLXf

— MaxBid24 (@MaxBid24) May 3, 2024

Claiming Challenges Add Fuel To The Fire

Adding insult to injury, the process for claiming airdropped FRIEND tokens reportedly proved cumbersome for many users. Technical glitches and an unintuitive interface hampered the claiming process, leading to user frustration and accusations of a poorly designed launch.

Related Reading: Bitcoin Back In The Bullpen: Whales Spark Rebound With $2.8 Billion Purchase

A Silver Lining, Or A Statistical Mirage?

Despite the initial chaos, there have been some signs of life for FRIEND. Liquidity has improved somewhat, and the number of token holders continues to grow. However, this growth might be misleading.

With the token price so low, the barrier to entry is minimal, potentially attracting new holders who are simply curious or hoping for a rebound. More importantly, the number of sellers continues to outpace buyers, indicating a lack of long-term confidence in the token’s value.

Featured image from Pexels, chart from TradingView

In a concerning turn of events, an anonymous crypto trader has lost approximately $71 million worth of assets in an address poisoning scam. This incident has roused much tension in the crypto ecosystem, underlining the need for improved safety measures.

Trader Loses 1,155 WBTC To Address Poisoning Attack 

According to multiple reports, an unknown trader fell victim to an address-poisoning scam on Friday in which they lost 1,155 Wrapped BTC (WBTC) valued at $71 million wiping off 97% of the victim’s wallet balance.

For context, address poisoning occurs when malicious actors deceive unsuspecting and innocent traders into transferring their cryptocurrencies to a fraudulent address. Usually, these fake addresses are designed via address mining to resemble the original intended address.

Back in August 2023, former Binance CEO Changpeng “CZ” Zhao raised an alert on this type of attack following an attempt to steal $20 million from one of the exchange’s users. CZ explains that these scammers usually commenced an attack by sending our dust transaction and inserting the fake address into the target’s transfer history.

The ex-Binance boss stated that this address manipulation took advantage of the fact that most wallets’ user interface only shows the beginning and end of addresses hiding the middle part. 

In relation to the recent address poisoning incident, Meir Dolev, Founder of blockchain security firm Cyvers, has confirmed that the scammers’ address had the same six characters at the beginning and the end as the original address. 

He also stated that the attackers have now exchanged the stolen WBTC for 22,956 ETH which has been distributed to 10 different wallets. Meanwhile, the scammers’ main address has been branded as “fake” or “phishing” on the Etherscan Explorer to avoid further attacks.

Crypto Losses Fall To $53 Million In April

According to a report by security firm Immunefi, total crypto losses in April 2024 were estimated at $53 million. Of these figures, about $50 million were lost to hacks, while fraud and scams accounted for only $3.03 million. 

Interestingly, While the reported losses for April 2024 are quite weighty, they represent a decline of 60% from the values recorded in March 2024, and importantly a 46% decrease from April 2023.

Nevertheless, the recent address poisoning attack has indicated the need for constant vigilance from investors alongside continuous innovation in terms of blockchain network security. 

Total crypto market valued at $2.261 trillion on the daily chart | Source: TOTAL chart on Tradingview.com

Два американских конгрессмена ― Майк Флуд и Уайли Никель ― направили письмо председателю SEC Гэри Генслеру с требованием одобрить опционы на спотовые ETF на биткоин.

Популярный криптовалютный аналитик Вилли Ву считает, что растущее принятие биткоина поможет курсу первой криптовалюты достигнуть $1 млн уже в течение 11 лет.

Как сообщил адвокат Александра Винника, сооснователя криптовалютной биржи BTC-e, россиянин заключил сделку с американской прокуратурой и признал вину в отмывании $9 млрд с помощью криптовалют.

The US Securities and Exchange Commission (SEC) has extended its review period on the launch of crypto asset management company 7RCC’s Bitcoin spot ETF (exchange-traded fund). 

SEC Extends Deadline For 7RCC’s Bitcoin Spot ETF

In a notice published on Thursday, May 2nd, the SEC said it will now decide to approve or disapprove the 7RCC Bitcoin spot and Carbon Credit Futures ETF by June 24, 2024. This represents an almost two-month (45 days) extension from the initial deadline, which was set for May 10.

The financial regulator said in the filing:

The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change. 

The application submitted to the SEC in December 2023 shows that 7RCC’s fund is designed to provide direct exposure to Bitcoin alongside carbon credits. The firm’s filing revealed that the ETF will track the changes in the premier cryptocurrency’s price and carbon credit futures based on the Vinter Bitcoin Carbon Credits Index.

The ETF intends to invest 80% of its assets in Bitcoin and 20% in financial instruments, such as swaps, that provide exposure to carbon credit futures contracts tied to emissions allowances. Based on 7RCC’s application, the carbon credits are related to the European Union Emissions Trading System, the California Carbon Allowance, and the Regional Greenhouse Gas Initiative.

Crypto exchange Gemini has been named as the custodian of the Bitcoin Spot ETF. If approved, this fund will offer a new dimension to the ETF market, especially after the launch of 11 Bitcoin spot ETFs in January.

SEC To Deny Ether Spot ETFs: Michael Saylor

Another exchange-traded product awaiting the greenlight of the SEC is the Ether spot ETF. Unfortunately, conversations around the potential approval of the investment product have not been optimistic in the past few weeks.

MicroStrategy Executive Chairman and Co-founder Michael Saylor is the latest personality to dampen any hopes of seeing the ETH spot ETF launch in the United States. Speaking at MicroStrategy’s Bitcoin For Corporations conference, the Bitcoin advocate speculated that the SEC would label Ether as a security.

Saylor mentioned that the financial regulator could also designate other tokens, including BNB, SOL, XRP, and ADA as unregistered crypto asset securities. The MicroStrategy CEO said:

None of [these tokens] will ever be wrapped by a spot ETF, none of them will be accepted by Wall Street, and none of them will be accepted by mainstream institutional investors as crypto assets.

Michael Saylor is a vocal supporter of Bitcoin, as shown by his firm’s consistent BTC acquisition. As Bitcoinist reported on April 30, MicroStrategy holds 214,400 BTC – worth roughly $13.5 billion as of this writing.

About two weeks ago, the crypto space faced another alleged rug pull. This time, the gambling platform and blockchain casino ZKasino was at the center of the accusations, with many investors claiming their money was gone.

Despite the allegations, ZKasino continued to post X updates before disappearing from the public eye with investors’ money. The most recent development shows that a suspect was arrested in the Netherlands by the Dutch authorities, and over $12 million was seized in the process.

Suspected Crypto Scammer Arrested

The Fiscal Information and Investigation Service of the Netherlands (FIOD) revealed on Wednesday that a 26-year-old man had been arrested earlier this week for the ZKasino rug pull.

Per the press release, the Dutch authorities started investigating the $33 million crypto gambling platform’s scam on April 25. The criminal investigation began with the online reports of the crypto community and information from the intelligence departments of the FIOD.

Staff from Binance’s Financial Crime Compliance team aided the FIOD during the investigation, helping “secure millions of euros in cryptocurrencies.” Similarly, the Office of the Public Prosecutor helped the investigation team contact the members of the ZKasino Team.

On April 29, the FIOD arrested a man suspected of “fraud, embezzlement and money laundering.” The suspect’s detention was extended to fourteen days for “investigative purposes” after being brought before a magistrate.

As part of the investigation, the authorities searched the suspect’s house and confiscated around €11.4 million, worth around $12.25 million, in different assets. FIOD seized real estate, luxury cars, and various cryptocurrencies.

Dutch authorities don’t rule out further arrests as the involved scammers’ cooperation will be required to recover and return the victim’s stolen money.

ZKasino, A Scam From The Beginning?

As reported by Bitcoinist, the crypto gambling platform scam rumors started in March when decentralized exchange (DEX) ZigZag made serious accusations against the project. Per the rivaling crypto exchange, ZKasino had failed to pay developers and other contractors who helped build the platform.

Moreover, ZigZag claimed that the fundraising and the project’s valuation were likely fake. The post added that the previously announced $40 million ecosystem wasn’t real and would likely never be paid out in real currency.

Despite the alarms ringing, trust in the crypto project did not completely crumble until April 20. Users began reporting suspicious activity after the website started to show changes.

One X user pointed out that, previously, the “How does the Brid-To-Earn?” section of the platform stated that the bridged Ethereum would be returned to investors when the chain and its native token, ZKAS, were live. However, this portion of the text was allegedly deleted.

Where is our ETH ? pic.twitter.com/fV3d5iFbq4

— Noé G (@0xNoe) April 20, 2024

It’s worth noting that ZKasino led investors to believe they would get their investments back within 30 days. The team had promised the ability to withdraw their bridged Ethereum 1:1. Instead, users found their funds were locked in ZKAS with a 15-month vesting period.

Concerns grew after the bridge became inaccessible after the chain went live. The team later claimed it was “down for maintenance and will be re-worked in conjunction with this launch.”

The project’s X account continued to post updates until April 24, when it announced that the Bridge was live again. Despite users’ complaints about the stolen funds, the post added that users could “transfer your $ZKAS from the ZKasino chain to Ethereum and likewise.”

After this final post and the lack of addressing the situation, users confirmed their suspicion they had been rugged. FIOD’s investigation pointed out that ZKasino’s promises were never meant to be kept as the smart contract’s setup suggests the fund’s “return was not intended.”

The Dogecoin open interest has seen a massive crash in the last month, leading to concerns about the future prospects of the meme coin. It is now a long way from its March all-time highs and has returned to the low levels of early February.

Dogecoin Open Interest Sees 66.5% Crash

In March, the Dogecoin open interest had risen to a new all-time high of $1.91 billion after a month of steady increase. This was followed by an increase in the DOGE price as investors rushed to join the rally and secure gains. This steady growth would continue into the start of April, but since then, the price has been on a downtrend.

Data from Coinglass shows that on April 1, the total Dogecoin open interest came out to $1.87 billion. But in the space of one week, the open interest had fallen by $600 million. The decline continued through to the end of April and by the end of the month, the open interest was at $763 million.

With the month of May following the bearish trend of April, the decline in the open interest has been constant. At the time of writing, the total Dogecoin open interest is sitting at $625.7 million, a whopping 66.5% crash from its $1.87 billion level just a month ago.

The last time the Dogecoin open interest was this low was toward the end of February. However, the open interest is still a long way from its January lows when it was trending below $300 million. At the same time, the DOGE price is also higher, suggesting the last few months have been quite good for the meme coin.

How Will DOGE Price React?

The reaction to a sharp drop in open interest has always been the same, ending with the price of the cryptocurrency seeing a decline. Dogecoin has stuck to this trend as its price has dumped almost 50% at the same time as bears continue to exert dominance.

If the DOGE open interest continues to decline, then investors can expect the price to follow the same path. Such a crash could send the Dogecoin price below the $0.12 support, which could be the start of a downward spiral.

However, if the open interest does recover, then a reversal in price is expected as well. Mostly, this would depend on how the price of Bitcoin performs from now on, but as interest begins to grow and traders take more positions, it gives room for Dogecoin to grow.

Bitcoin price action might be dicey, undergoing a major corrective phase. However, even as $60,000 looks slippery for upbeat bulls, some analysts are optimistic that the coin is ready for a strong leg up. 

Going by past price action, analysts maintain that the coin will surge above $73,800 and register fresh all-time highs closer to or higher than $100,000 in this projected expansion.

Historical Price Action Places BTC Above $90,000 In Coming Months

One analyst, posting on platform X, offered a bold prediction based on price action from late 2022. Then, Bitcoin spectacularly collapsed to as low as $15,500 before bouncing back sharply throughout 2023 and Q1 2024. 

Therefore, if Bitcoin follows this formation, the coin will soar to $90,000 and even reach $100,000. While the timeframe for this potential surge remains unclear, another analyst on platform Y chimed in with a specific prediction.

In a post on X, the analyst said it is imperative that Bitcoin trades above $60,000 so that the uptrend momentum doesn’t fizzle. This resilience will form the base of a leg up that will see Bitcoin roar to as high as $95,000 by August 2024. The timing of this potential peak is because, the analyst explains, price action is fractal and thus tends to rhyme.

Further bolstering this bullish outlook, another analyst noted that after prices sunk to as low as $56,500 this week, it retested a key support trend line. 

Since this trend line is held, the analyst predicts that “it is only a matter of time” before prices shoot higher. However, prices will flip green if there is a close above the current all-time high of $73,800.

Inflation Remains High And M2 Supply In The United States Growing

With the approval of spot Bitcoin exchange-traded funds (ETFs), Bitcoin is now interwoven with global markets. Accordingly, key events in traditional finance will likely impact crypto prices and sentiment. One key metric that investors and analysts have been monitoring is inflation. 

Related Reading: FTX Exec Loses Paradise, Surrenders $5.9 Million Bahamas Mansion

Inflation has been higher than the benchmark 2% in the United States, an obstacle preventing the Federal Reserve from slashing rates further.

However, even as inflation drops—from the 2021 to 2024 cycle—the M2 money supply has been rising, according to FRED Economic data. The last time it grew, it triggered a bull run that forced the coin to fresh all-time highs of around $70,000.

XRP has largely had a lackluster price movement in recent months, although it continues to show promise for real-world utility. Particularly, the price of XRP was recently rejected at $0.66 after a little surge which saw it falling back down as far as the $0.42 price level. The crypto now finds itself ranging between $0.6 and $0.4, which means it has failed to break over new price territories for the past two years. 

While some analysts see this trend as XRP still being undervalued, others are of a pessimistic outlook. Analyst Josh Olszewicz is part of the latter group of crypto analysts. In a recent analysis, Olszewicz noted the “dead” state of XRP while discussing the current state of altcoins. 

Current State Of XRP And The Crypto Market

XRP has failed to keep up with the gains of other major cryptocurrencies like Bitcoin and Ethereum. While the total crypto market cap has climbed over 50% in the past year, XRP has lagged. Cryptocurrencies like Bitcoin have broken into new all-time highs and others like Solana are on their way to creating new all-time highs.

XRP on the other hand, has failed to break above $1. This poor performance has led many critics to claim that interest in XRP is fading, especially as an investment asset.

The failure of XRP to break into new price levels was brought to the attention of crypto analyst Josh Olszewicz, who pointed out an interesting position regarding the cryptocurrency.  During his presentation on his technical analysis of altcoins, Olszewicz made the observation that XRP is not particularly ideal for investors who want to make a profit. He essentially referred to the cryptocurrency as “dead.”

“I just don’t know why anybody will bother trading this. It’s at the same price it was since 2018. It’s dead. It’s dead money,” the analyst said regarding XRP.

Is XRP Actually Dead?

Recent market dynamics have seen XRP falling in the market cap rankings. At the time of writing, XRP is trading at $0.515 and is the 7th largest cryptocurrency. Some analysts argue that XRP is primed for significant growth. XRP bulls point to Ripple’s partnerships with major banks and payment providers as a sign of future success. 

Despite the lackluster price growth, XRP remains steady in terms of trading activity. Interestingly, Olszewicz noted that XRP will have days when traders can profit. However, holding while waiting for a longer-term bullish outlook doesn’t make sense to him. 

Crypto analyst EGRAG is of a different opinion. According to him, XRP could surge by over 700% and reach the $4 price level over a longer time frame.

On-chain data suggests the Bitcoin short-term holders haven’t been capitulating during the crash, a sign that a shift has occurred in the market.

Bitcoin Short-Term Holders Haven’t Been Doing Much Loss-Selling Recently

As pointed out by analyst James Van Straten in a post on X, the BTC short-term holders haven’t been sending much BTC at a loss recently, despite the plunge the asset’s price has suffered.

The “short-term holders” (STHs) refer to the Bitcoin investors who bought their coins within the past 155 days. These investors make up one of the two main divisions of the BTC market, with the other cohort being known as the “long-term holders” (LTHs).

Statistically, the longer an investor holds their coins, the less likely they are to sell at any point. As such, the LTHs are considered the resolute side of the market, while the STHs are considered the weak hands.

Generally, the STHs easily sell whenever a change in the market happens, like a crash or rally. As such, these investors could be expected to have participated in some selling during the latest plummet in the coin as well.

One way to track whether these investors are selling or not is to track their exchange deposits. Holders don’t always deposit to these platforms for selling, as they offer other services as well, but inflows during a rally/crash are more often than not an indication of a selloff.

In the current discussion, the entire exchange transfer volume for this cohort isn’t of interest, but only the part of it that’s being deposited at a loss. As Straten has highlighted in the chart below, a curious pattern has emerged in this loss exchange inflow volume for the STHs.

As displayed in the above graph, the Bitcoin transfer volume from the STHs in loss to exchanges registered a huge spike back in January, as the market downturn following the approval of the spot exchange-traded funds (ETFs) occurred.

In the price decline that followed the top in May, the metric also registered a large spike, although notably smaller in scale than the January one. It would appear that during both of these drawdowns, the STHs had shown a significant capitulation reaction.

During the latest crash, however, the trend doesn’t appear to have been the same. “What is really interesting is that in these past two days, Bitcoin dropped 12%, but STHs sent very little Bitcoin to exchanges at a loss,” notes the analyst.

This would suggest that these weak hands have gained some strength recently. “Lettuce hands are becoming slightly less erratic, signs of a maturing market,” says Straten.

BTC Price

Bitcoin has shown some recovery from the crash during the past 24 hours as its price has now returned back to the $60,700 level.

The recent actions of the US Department of Justice (DOJ) have ignited a fierce debate on the future of financial privacy.

The crackdown on Wasabi Wallet’s service has raised significant concerns among privacy advocates and crypto users alike, spotlighting the tension between regulatory actions and the right to private digital transactions.

A Blow To Privacy: DOJ Targets Wasabi Wallet

Wasabi Wallet, known for its privacy-focused features, recently announced the shutdown of its Coinjoin coordination service. This service was integral to enhancing user anonymity by mixing details of multiple transactions to obscure the trail back to the fund’s original source.

The decision came after heightened scrutiny from the DOJ, which has increasingly focused on privacy tools under the guise of preventing illicit financial activities. This action has not only disrupted service operations but also sparked a broader conversation about privacy rights in the digital realm.

Naomi Brockwell, a vocal cryptocurrency advocate, expressed her dismay on X, emphasizing that financial privacy is fundamental to a free society. Her sentiments echo a growing discomfort among digital users and privacy proponents who view such regulatory measures as “overly intrusive” and “detrimental” to personal freedoms.

This week the DOJ criminalized the devs of an app that restores financial privacy. Financial privacy is essential for a free society. I had a brief chat back in 2020 with @Snowden about the need for privacy in bitcoin.https://t.co/FBDSqqpvXJ pic.twitter.com/X2nNPJYSgc

— Naomi Brockwell (@naomibrockwell) May 3, 2024

The Reaction From The Crypto Community

The response from the crypto community was swift and pointed, with notable figures like Edward Snowden weighing in on the implications for Bitcoin’s future. Snowden, a long-time advocate for privacy rights, criticized the slow progress on enhancing privacy features within the Bitcoin network.

His comments reflect a frustration with the ongoing vulnerability of cryptocurrencies to potential government oversight and interference.

Snowden also underscored the urgency for developers to innovate and implement strong privacy solutions that could withstand governmental pressures.

He pointed out that the technological capability exists but the implementation has lagged, leaving users exposed and the promise of decentralized financial systems unfulfilled. Snowden noted in a post on X:

I’ve been warning Bitcoin developers for ten years that privacy needs to be provided for at the protocol level. This is the final warning. The clock is ticking.

Meanwhile, the implications of the DOJ’s actions extend beyond Wasabi Wallet. So far, the US DOJ appears to be on a trend of increased regulatory interventions in the cryptocurrency space.

Recently, following the enforcement measures against Tornado Cash and Binance, the DOJ recently initiated a lawsuit against KuCoin, a leading cryptocurrency exchange, for multiple regulatory violations, including breaches of anti-money laundering laws in the United States.

Featured image from Unsplash, Chart from TradingView

Shiba Inu marketing lead, Lucie has announced plans that would see ShibaSwap, a Decentralized Exchange (DEX) on the Ethereum blockchain expanding to a new chain. This new development could significantly transform the Shibarium ecosystem, potentially fueling a price leap for Shiba Inu’s native token, SHIB and Shibarium’s BONE.

ShibaSwap Is Going Multi-Chain

While the Shiba Inu ecosystem is still celebrating the completion of the Shibarium hardfork, Lucie has dropped a new mega development, announcing that ShibaSwap will be going multichain, operating on both the Ethereum network and the Shibarium Layer 2 network.

According to a new edition of The Shib Magazine, the integration of ShibaSwap on two prominent chains will represent a significant milestone for the Shiba Inu ecosystem, as ShibaSwap will be “enhancing rather than replacing its foundational Ethereum connections.” The decentralized exchange had initially operated solely on the Ethereum blockchain, however with the upcoming transition, ShibaSwap will be accessible on both chains, potentially improving its overall functionality and drastically reducing gas fees.

This new integration will also enable ShibaSwap to overcome the limitations of a single blockchain network, ensuring a seamless and more reliable trading experience for its growing community. Additionally, the expansion into Shibarium’s L2 network will have immense benefits on Shibarium’s ecosystem token, BONE.

Maximus, a seasoned moderator at Shiba Inu’s Tech disclosed that ShibaSwap’s integration into Shibarium will potentially reduce BONE’s substantial supply, totaling more than 249.9 million, with a circulating supply of 229.9 million.

He further clarified how the planned transition will supposedly decrease BONE’s supply, explaining that “both builders and users will need some BONE to use Shibarium while projects will acquire BONE to add liquidity for their tokens, and lock this liquidity, or even burn the liquidity tokens, locking BONE forever.” This reduction in the token’s supply is expected to improve the value of BONE, and possibly SHIB over time.

Shiba Inu Token Set For New Gains

Following the completion of Shibarium’s hard fork on April 29, the price of SHIB witnessed significant gains, surging by approximately 3.78% in the past 24 hours. The cryptocurrency is currently trading at $0.000022, according to CoinMarketCap.

The announcement of ShibaSwap’s upcoming expansion into the Shibarium network alongside the conclusion of Shibarium’s upgrade could potentially drive new adoption and interest into the Shiba Inu ecosystem. This in turn could fuel a price increase for SHIB, enabling the popular meme coin to soar to new highs.

While speaking to The Shib Magazine, Maximus disclosed that he expects a significant increase in volume in BONE, as the transition is a change that most community members have been excited for. He revealed that Shiba Inu ecosystem tokens could potentially experience a price increase, concluding that a favorable price action will benefit the community and the ecosystem in the long run.