What Happened in Crypto Today: Another Bitcoin Dump Incoming?

Crypto just took another unexpected plunge.

But here's something interesting: while most were caught off guard, our spidey senses were tingling.

But truth be told, no one could predict the exact catalyst for today's dive after Trump’s optimistic speech.

So, let’s explore what’s moving the market today (and causing this panic)!

TLDR:

The US government making moves with $2 billion worth of Bitcoin. Are they trying to sell them now?

Bitcoin fees hit rock bottom while prices soared this weekend. Is this the calm before the storm? 🌪️

Solana's fee revenue outpaces Ethereum. So what's behind this Solana surge? Is this growth stable or just a temporary pump? 🥋

Ronin Network's user base just hit 2 million active users. What’s causing this surge on the network all of a sudden? 🍝

A new Doge-inspired token named Neiro takes off. Wanna know which Neiro token is still shining? 🚀

And in the end, we'll serve up some market analysis. What's really going on, and where are we headed?

Now, let's dive in...

The Reason Market Took a Dive Today!

The U.S. government made a $2 billion Bitcoin move - a news that spread like a wildfire in the crypto community.

Arkham Intelligence reports that Bitcoin seized from the infamous Silk Road has been transferred to an unknown wallet. That's a lot of digital gold on the move.

The timing? It's raising eyebrows.

This shuffle comes just two days after Trump promised a "strategic Bitcoin stockpile" at the Bitcoin 2024 conference.

The market didn't take kindly to the news. Bitcoin dropped from $69K to $66.5K within a few hours.

But how many Bitcoins are these? Are they trying to sell them now? Read the full story!

The Bitcoin Paradox

Around weekend, Bitcoin’s price flirted with all-time highs (before taking a panic-selling dive), transaction fees hit rock bottom.

According to Bitinfocharts, the average Bitcoin transaction fee dropped to $0.73. That's the lowest we've seen since August 2023. It's since crept up to $0.903, but that's still crumbles in crypto.

The coin’s price even touched $70,000 on Monday after Trump's Bitcoin 2024 conference speech.

His promise of a "strategic Bitcoin stockpile" got investors excited, but the price couldn't quite stick the landing above $70k (similar to what we mentioned in our analysis yesterday).

So what makes this situation unique?

Typically, when Bitcoin's network gets busy, fees go up. Users end up in a bidding war for faster transactions, and miners cash in. But right now? It's like rush hour with no traffic.

So what does this exactly mean? Since we are continuously running into unprecedented situations, what’s the estimated price impact? Read the full story!

Solana's Outpacing Ethereum

Solana just outpaced Ethereum in weekly fees for the first time ever.

During the week of July 22, Solana raked in $25 million in revenue, leaving Ethereum's $21 million behind.

Dan Smith from Blockworks broke it down for us. 58% of Solana's haul came from MEV tips, with another 37% from priority transaction fees.

As he puts it, "Solana validators and stakers are absolutely eating this cycle."

So what's behind this Solana surge? Is this growth stable or just a temporary pump? Read the full story!

Ronin Network Is Quietly Building

On July 29, Token Terminal announced that Ronin's enjoying two million daily active users. That's not just good - it's chart-topping.

They're outpacing giants like Tron and Solana.

So what's behind Ronin's rise? It's all about the games!.

Their mid-year review paints a pretty picture. The Mavis Market NFT marketplace is booming, and RON's listing on Binance opened the floodgates to "gamers country."

But there is a specific game that pushed Ronin in the big leagues. Read more to find out!

Neiro - The Next Memecoin Gem?

Remember Kabosu, the OG Doge meme Shiba Inu? Her owner, Kabosumama, just adopted a new pup named Neiro, and the crypto market's gone absolutely crazy.

Kabosumama tried to nip it in the bud, saying she's only backing OwnTheDoge. But you know how crypto is - it's like trying to herd cats.

Right after the announcement, Solana was flooded with Neiro tokens. One hit an $89 million market cap in just three hours.

The interesting bit? Crypto Twitter erupted in a full-on dogfight over which Neiro token was the real deal.

While some Neiro tokens rugged their holders after hitting millions, others gave early investors enjoyed sweet returns within a few hours.

Wanna know which Neiro token is still shining? Read the full story!

Where Is the Market Headed? An Analysis

The recent 4.5% dip below $67,000 has got everyone concerned.

But let's not hit the panic button just yet.

This drop coincides with a $2 billion transfer from a U.S. government wallet. Historically, large government movements have rattled markets. Remember last month, when German government moved thousands of seized Bitcoins and investors started panic selling, even before the sell-off happened?

The recent $2 billion transfer isn't just a blip on the radar. It's part of a larger trend we've seen before.

These moves often lead to short-term volatility as traders try to anticipate potential sell-offs.

But here's the thing: not all government wallet movements lead to immediate selling. Sometimes, it's just about moving funds for security or administrative reasons. The key is to watch for patterns and official announcements.

What Should You Do?

Keep a sharp eye on these key events that have historically shaken up the crypto market:

FOMC Meeting

Looking ahead, we've got a packed week.

The FOMC meeting and rate decision on Wednesday could shake things up. In the past, these events have been catalysts for significant price movements.

Wondering how these events impact crypto prices so you can anticipate the next move? Here is the full guide!

Token Unlocks to Watch

Keep an eye on token unlocks this week. $368.19 million worth of tokens are set to hit the market. Wormhole, Optimism, and Sui are the big players here.

These unlocks can cause short-term volatility, so stay alert.

Pro tip: You can always track upcoming unlocks on CoinMarketCap to stay ahead of the curve. It's crucial to keep tabs on these events as they can significantly impact token prices and overall market sentiment.

Now, The Bigger Picture

Now, let's zoom out a bit. The global crypto market cap is sitting at $2.4 trillion, down from 2.7T in Q1.

But don't let that number fool you. The 24-hour trading volume is up by triple digits in the same period.

The market's showing some mixed signals. Bitcoin dominance is at 54%, which doesn't scream "altcoin season" just yet.

But here's the interesting part: According to CMC H1 2024 report, the stablecoin supply is up by 20% since the start of 2024. Historically, that's been a bullish indicator. It suggests fresh capital is entering the crypto markets.

Institutional vs. Retail Interest

We're in an interesting spot. Institutional money is flowing in, but retail interest has been lagging in H1. Google trends and app store rankings suggest the average Joe hasn't jumped on the crypto train yet.

This divergence between institutional and retail interest is noteworthy. In previous cycles, like the 2017 bull run, retail FOMO (fear of missing out) played a significant role in driving prices to new highs.

The fact that we're seeing strong institutional interest without the retail crowd could mean there's still room for growth.

Looking for more alphas? Feel free to dive into According to CMC 2024 H1 report!

And that concludes our piece today. See you tomorrow with more stories!

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Doge Owner’s Adopted Shiba Inu Neiro Kicks Off Memecoin Frenzy

Kabosu, the iconic Shiba Inu who inspired the original Doge meme and subsequently the Dogecoin cryptocurrency, passed away in May. Her legacy, however, continues to influence crypto. Last Saturday, Kabosu’s owner, known online as "Kabosumama," announced the adoption of Neiro, a 10-year-old rescue Shiba Inu.

Kabosumama took to Twitter to clarify that she does not endorse any crypto project aside from OwnTheDoge, which owns the original Doge photo and intellectual property. OwnTheDoge is a project that fractionalized the original Doge photo into the DOG coin, distinct from Dogecoin, which has no official ties to Kabosu.

Despite this clarification, numerous Neiro tokens were launched on the Solana blockchain. One of these tokens quickly achieved a market cap of $89 million within just three hours of Neiro's introduction on Twitter. As this token surged on Saturday, debates erupted among Crypto Twitter users about its legitimacy. Some users argued that another Neiro token, launched an hour earlier, was the authentic one.

During a Twitter Spaces session hosted by the creators of the first Neiro coin, market dynamics began to shift. The initially lesser-valued Neiro coin surged to a nearly $20 million market cap, while the previously leading token plummeted to $23 million. Crypto Twitter figure Ansem's involvement drew significant criticism, with some blaming him for the market's turbulence. Critics accused him of influencing traders to move funds from the higher-valued token to the earlier one.

Throughout this turmoil, Solana-based meme coins inspired by Neiro generated substantial trading volume on decentralized exchanges (DEXs), surpassing the trading volume of any individual Ethereum layer-2 network. Raydium, a Solana DEX, processed $2.5 billion in trading volume over the weekend, with $1.37 billion on Sunday alone, the highest single-day volume for July.

Ronin Network Tops Daily Active Users Charts with Gaming Ecosystem Surge

The Ronin (RON) network has emerged as the leader in a key blockchain activity metric, driven by significant milestones within its gaming-focused ecosystem throughout 2024. On July 29, Token Terminal reported that Ronin recorded a DAU count of two million, outpacing other active blockchains such as Tron and Solana. Tron followed with 1.8 million active users, while Solana had 1.2 million users within the same 24-hour period.

Ronin's ecosystem has been expanding rapidly, as highlighted in its mid-year review published on July 23. The growth in the first half of 2024 has been attributed to several key factors. Notably, a surge in volume on its non-fungible token (NFT) marketplace, Mavis Market, and the listing of the Ronin (RON) token on Binance provided users with a gateway into what the Ronin team describes as "gamers country."

The team reported that there are now 12 million RON holders and over three million downloads of the Ronin Wallet. The network boasts 15 playable games, with more in development, contributing to its robust user engagement.

One significant development was the migration of Pixels, one of the largest Web3 games by user count, to the Ronin network in February 2024. By June, the game’s monthly active users had peaked at 1.7 million. Over the past year, players spent more than 15 million PIXEL tokens on VIP coupons within the game, underscoring the active participation within the ecosystem.

In addition to its gaming advancements, the Ronin network has also enhanced its technological infrastructure. On June 18, Ronin announced plans to introduce Ronin zkEVM, a zero-knowledge (ZK) Ethereum Virtual Machine (EVM) layer-2 chain utilizing a modified version of the Polygon Chain Development Kit (CDK).

U.S. Government Moves $2 Billion in Seized Silk Road Bitcoin

According to Arkham Intelligence, the United States government has transferred over $2 billion worth of Bitcoin, seized from the infamous Silk Road dark web marketplace, to an unidentified wallet. As of now, it remains unclear whether the U.S. plans to sell the recently transferred Bitcoin.

This transfer comes just two days after former President Donald Trump, currently the Republican candidate in this year's presidential election, vowed at the Bitcoin 2024 conference in Nashville to create a national "strategic Bitcoin stockpile" if elected. Trump emphasized that under his administration, the government would cease selling any seized Bitcoin.

The market reacted swiftly to the news of the transfer. The price of Bitcoin dropped by more than 2% within an hour. After briefly hitting $70,000 per coin on Monday morning, Bitcoin’s price fell to $66,00, trading down 4.6% in the past 24 hours. BTC has since recovered slightly, and is currently trading at $66,550.

Crypto entrepreneur and Galaxy Digital CEO Mike Novogratz criticized the timing of the move. The federal government frequently moves Bitcoin that has been seized from criminals between wallets and custodians. While the authorities have sold seized crypto in the past, such transfers do not always signal an intent to liquidate.

Solana Surpasses Ethereum in Weekly Revenue Amid Memecoin Frenzy

Solana has outpaced Ethereum in weekly total fees for the first time during the week of July 22, generating around $25 million in revenue compared to Ethereum's $21 million. The total fee data includes all forms of revenue for Solana validators, such as tips and maximum extractable value (MEV).

Blockworks data analytics manager Dan Smith noted on X that 58% of Solana's fee revenue came from MEV tips, while 37% was derived from priority transaction fees. "Solana validators and stakers are absolutely eating this cycle," Smith remarked.

This surge in Solana's revenue is largely driven by a wave of celebrity coin trading on Solana-based memecoin platforms like Pump.fun and Moonshot. Memecoins, which have now surpassed a total market capitalization of $50 billion, have played a crucial role in Solana's recent growth.

Solana's total value locked (TVL) has skyrocketed to approximately $5.5 billion, more than tripling since the beginning of 2024. On July 28, Solana recorded daily total fees of over $5.5 million, marking the highest for the network in three months.

Furthermore, stakers on the network have earned cumulative rewards exceeding $32 million and are currently enjoying yields of around 7%. In contrast, Ethereum stakers are earning an annual percentage rate (APR) of 3.3%. Despite this, Ethereum remains the dominant player in terms of TVL, which stands at nearly $60 billion.

Bitcoin Transaction Fees Hit Yearly Low as Price Nears All-time Highs

As Bitcoin (BTC)’s price nears its all-time high, the cost of sending Bitcoin has dropped to its lowest in nearly a year. According to data from Bitinfocharts, the average transaction fee on the Bitcoin blockchain dropped to $0.73, the lowest since August 2023, when it briefly dipped to $0.64. It has since increased slightly to $0.903, or around 0.000014 BTC.

Currently, Bitcoin is trading at around $66,300 per coin, having surged to $70,000 on Monday on the back of Trump’s keynote address during the Bitcoin 2024 conference. Trump promised to establish a national "strategic Bitcoin stockpile" if elected, raising investors’ optimism. However, it failed to break above the $70,000 level, and is down 4.2% over the past 24 hours.

Bitcoin transaction fees typically spike when the network is congested. During periods of high activity, users must compete for transaction processing, allowing miners, who validate transactions and mint new coins, to charge higher fees for expedited processing.

Despite the recent low in fees, the Bitcoin network has experienced significant fee surges in the past. For instance, in April, the cost to send Bitcoin soared to a record $128 per transaction. This spike was largely due to the launch of Runes, a new standard for creating tokens on the blockchain, which clogged the network with activity.

What Happened in Crypto Today: The List of Big Players Going Bullish on Bitcoin!

Remember when politicians barely knew what Bitcoin was? Now they're making sure people know they support the industry to the fullest.

It's wild how fast things change.

In 2020, crypto was barely a blip on the political radar. Fast forward to 2024, and it's suddenly a make-or-break issue for candidates.

Are we seeing the birth of the "crypto voter"?

One thing's for sure – the crypto world is watching this election like never before. The stakes have never been higher.

So let’s dive into the market overview first!

Where Is the Crypto Market Headed?

Bitcoin's flirting with $70,000, and the crypto world is on high alert.

As we stand just 6% shy of the all-time high, we all are wondering: What's driving this surge, and where might we be headed?

Let's dive into the factors at play and what they could mean for the future of the market.

But first…

Why Is Bitcoin Going Up?

The Bitcoin 2024 conference in Nashville just wrapped up, and it was nothing short of fascinating. For the first time in crypto history, we saw major political figures from across the spectrum showing immense support for Bitcoin.

Former President Trump promised to create a "strategic Bitcoin reserve" if re-elected. This isn't just talk - it represents a potential shift in how governments view cryptocurrencies as strategic assets.

Senator Cynthia Lummis took it a step further, proposing a plan for the U.S. Treasury to acquire 1 million Bitcoin.

Economic Factors

While political support is grabbing headlines, economic factors are providing the fuel for Bitcoin's rise.

Inflation is showing signs of cooling, with the Personal Consumption Expenditures (PCE) index rising just 0.1% in June. This has investors speculating about potential interest rate cuts from the Federal Reserve.

Historically, when the Fed eases monetary policy, we've seen increased interest in risk assets like Bitcoin. The last time we saw a major bull run in 2020-2021, it coincided with unprecedented monetary easing in response to the COVID-19 pandemic.

Where We Might Be Headed

Historical Parallels: The Halving Cycle

To understand where we might be going, it's useful to look at where we've been. Bitcoin operates on a four-year halving cycle, where the reward for mining new blocks is cut in half.

Looking back at the 2020 halving cycle, we saw Bitcoin hit its previous all-time high about 18 months after the event.

We're currently three months post-2024 halving, so if history rhymes (and in crypto, it often does), we could be in for an interesting few months.

However, it's crucial to remember that past performance doesn't guarantee future results. Each cycle has its unique characteristics, influenced by broader economic conditions and market sentiment.

Is the market following historical patterns, or is this time different? What do the trading indicators suggest? Read the full analysis!

And with that in mind, let's dive into today's top crypto news. Here's your TLDR:

Trump promises a "strategic Bitcoin reserve" if elected. Any estimate of the price impact Trump’s re-election may have on crypto? 🇺🇸

Saylor predicts $280T Bitcoin market cap by 2045. But how did he come up with this number? 🤔

US Senator proposes government Bitcoin purchase. Do we have other senators that share her enthusiasm? Are US politicians finally going all-in on Bitcoin? 💰

Altcoins in "reaccumulation stage." Are altcoins going to experience another dip? 📊

$56M Ethereum token raises red flags. People invested $56 million dollars on a scam? How does that happen?  🚩

And lastly, an analysis on where the crypto market is headed! 🧐

Let’s dive in!

Trump's Big Announcement

Donald Trump just made a wild announcement at the Bitcoin 2024 conference in Nashville.

The former president pledged to create a "strategic Bitcoin reserve" if he's elected.

Trump's promise? To keep 100% of all Bitcoin the U.S. government holds or acquires.

His vision? Turning the U.S. into a "Bitcoin superpower."

Do we have any estimate of the price impact Trump’s re-election may have on crypto? Read the ful story!

Bitcoin’s $280T Market Cap by 2045?

Michael Saylor made a prediction that's got everyone talking at the Bitcoin 2024 conference in Nashville.

The MicroStrategy exec sees Bitcoin's market cap hitting $280 trillion by 2045. That's a big jump from today's $1 trillion valuation.

Saylor's also calling out their inefficiencies and pitching Bitcoin as the ultimate store of value. He's dubbing it "the little orange asset that could."

He's painting a picture of physical assets crumbling under war, famine, and disasters. Bitcoin, in his view, stands strong against these threats.

But how did he come up with this number? What’s his analysis? Read the full story!

And a US Senator Is Backing Bitcoin 😳

Senator Cynthia Lummis also made an appearance at the Bitcoin 2024 conference.

Her proposal? For the U.S. government to buy 5% of the world's Bitcoin supply and hodl it for at least 20 years. That's one million Bitcoin.

Lummis also shared the purpose: "It can be used for one purpose, to reduce our debt." At current prices, we're looking at a $73 billion investment.

The Senator's plan would roll out over five years, building on the 210,000 Bitcoin that Trump mentioned earlier.

Do we have other senators that share her enthusiasm? Are US politicians finally going all-in on Bitcoin? Read the full story!

Why Altcoins Are Not Moving? We May Have the Answer 🙃

And the Crypto Twitter is active again, talking about a "reaccumulation stage" in the altcoin world.

Translation? The market's probably catching its breath before the next big push.

Independent trader Mags shared some knowledge on July 25.

Altcoins have only climbed 58% since breaking out of a 525-day accumulation phase. That might sound like a lot, but in crypto terms, it's just warming up.

The TOTAL2 index, which tracks all cryptos except Bitcoin, took a 33% hit since March 11.

Even the Altcoin Season Index on CMC Mobile app, an index tracking the performance of top 100 coins to determine Bitcoin/Altcoin season, suggests that we are a bit too far from the altcoin season. (You can access it by checking the Overview tab on CMC Mobile app.)

Are altcoins going to experience another dip? What do analysts think? Read the full story!

$56M Ethereum Trap?

Blockchain investigator Wazz just sounded the alarm on a Neiro token on Ethereum.

A $56 million fully diluted valuation that might be nothing more than a honeypot trap.

People invested $56 million dollars on a scam? How does that happen? Read the full story!

And now time for an overall crypto market analysis…

Where Is the Crypto Market Headed?

Bitcoin's approaching $70,000, sitting just 6% below its all-time high. This surge has investors buzzing about what's driving it and where we might be headed.

The recent Bitcoin 2024 conference stirred things up with unexpected political endorsements, including some surprising promises from former President Trump.

Meanwhile, cooling inflation has sparked chatter about potential interest rate cuts, typically a boost for assets like Bitcoin.

We're also seeing more big players enter the game.

But is the market following historical patterns, or is this time different? How might global economic factors come into play? What do the indicators suggest?

Read the full analysis here!

That’s a wrap. We will see you tomorrow with more stories!

Where's the Crypto Market Headed? [July 19]

Where Are We Heading?

Bitcoin's flirting with $70,000, and the crypto world is on high alert.

As we stand just 6% shy of the all-time high, we all are wondering: What's driving this surge, and where might we be headed?

Let's dive into the factors at play and what they could mean for the future of the market.

But first…

Why Is Bitcoin Going Up?

The Bitcoin 2024 conference in Nashville just wrapped up, and it was nothing short of fascinating. For the first time in crypto history, we saw major political figures from across the spectrum showing immense support for Bitcoin.

Former President Trump promised to create a "strategic Bitcoin reserve" if re-elected. This isn't just talk - it represents a potential shift in how governments view cryptocurrencies as strategic assets.

Senator Cynthia Lummis took it a step further, proposing a plan for the U.S. Treasury to acquire 1 million Bitcoin.

Even Robert F. Kennedy Jr., running as an independent, declared that he has "most of his wealth in Bitcoin."

While this personal investment strategy might not directly impact policy, it demonstrates the growing acceptance of Bitcoin among political figures.

This level of political endorsement is unprecedented.

Back in 2020, crypto was barely a blip on the political radar. Now, it's become a campaign issue, with potential far-reaching implications for future policy and adoption.

Economic Factors

While political support is grabbing headlines, economic factors are providing the fuel for Bitcoin's rise.

Inflation is showing signs of cooling, with the Personal Consumption Expenditures (PCE) index rising just 0.1% in June. This has investors speculating about potential interest rate cuts from the Federal Reserve.

Historically, when the Fed eases monetary policy, we've seen increased interest in risk assets like Bitcoin. The last time we saw a major bull run in 2020-2021, it coincided with unprecedented monetary easing in response to the COVID-19 pandemic.

However, it's important to note that the current economic landscape is different. We're not in a crisis situation, but rather navigating a post-pandemic recovery with its own unique challenges.

Institutional Support

We're witnessing a notable increase in institutional involvement, a trend that's been building since the launch of Bitcoin ETFs in January.

The State of Michigan Treasury recently disclosed its investments of $6.7 million in the ARKB Bitcoin ETF. This follows the State of Wisconsin Investment Board's move to take a position in Bitcoin ETFs in Q1.

These state-level investments are significant. They represent a shift in how traditional financial institutions view Bitcoin - not just as a speculative asset, but as a legitimate part of a diversified portfolio.

Even Bitcoin miners, often seen as natural sellers, are changing their stance. Marathon Digital's recent announcement of a $100 million Bitcoin purchase sends a strong signal about their confidence in future price appreciation.

Where We Might Be Headed

Election Year Effects

The upcoming U.S. presidential election adds another layer of intrigue to the crypto markets. In both 2016 and 2020, we saw significant market movements in the months leading up to and following the elections.

This time around, crypto has become a campaign issue in its own right. The market's reaction to political developments could be more pronounced than ever before.

For instance, Trump's recent statements at the Bitcoin conference led to a noticeable price bump. As we get closer to the election, we might see increased volatility in response to campaign promises and policy proposals related to crypto.

Regulatory Landscape: Navigating Uncertain Waters

The crypto industry is still finding its footing in the regulatory world. The SEC's recent approval of Ether ETFs shows some progress towards mainstream acceptance, but ongoing legal battles (like the Ripple case) continue to create uncertainty.

The outcome of these regulatory decisions could have far-reaching effects on the market. A clear regulatory framework could pave the way for more institutional adoption, while overly restrictive policies could stifle innovation and growth.

Global Economic Factors: A Wider Lens

While much of our focus has been on U.S.-centric events, it's crucial to consider the global picture. The last time Bitcoin approached these levels, we were in a very different economic climate globally.

Countries facing economic instability or high inflation rates might turn to Bitcoin as a hedge, potentially driving up demand. We've seen this play out in countries like Argentina and Turkey in recent years.

Additionally, global geopolitical tensions can influence Bitcoin's perceived value as a non-state controlled asset. Any major international developments could have knock-on effects for the crypto market.

What to Watch

1. Political developments: Keep an eye on how crypto policy evolves as we get closer to the election. More endorsements or concrete policy proposals could sway market sentiment.

2. ETF performance: The new Ether ETFs and existing Bitcoin ETFs provide a window into institutional and retail interest. Significant inflows or outflows could signal shifting attitudes.

3. Global adoption: Watch for news of countries or major corporations adopting Bitcoin. El Salvador's Bitcoin experiment in 2021 moved markets - similar moves by larger economies could have an even bigger impact.

4. Regulatory news: Any major regulatory decisions, especially in the U.S., could have far-reaching effects. The outcome of ongoing legal cases and new policy announcements will be crucial.

5. Technical indicators: While fundamentals are driving the current surge, technical analysts will be watching key resistance levels. Breaking decisively above the all-time high could trigger a new wave of buying.

6. Macroeconomic data: Inflation reports, GDP growth, and Fed policy decisions will continue to influence Bitcoin's performance as both an inflation hedge and a risk asset.

$56M FDV Neiro Token on Ethereum Likely a Honeypot Scam

On July 28, independent blockchain investigator Wazz warned about the largest $Neiro token on the Ethereum network, labeling it a potential honeypot scam. Wazz highlighted a specific Neiro meme token, identified by the Ethereum address "0x3ad4f189f08cdc60496eeBb3bd70B90dF28B7455," as particularly concerning.

According to Wazz, the token's owner is actively using the AutomatedMarketMaker() function to modify the transfer() function, which likely blacklists new buyers. This method bypasses most automated scan tests, making it difficult for typical security measures to detect the scam.

Neiro is the new pet Shiba Inu of ‘Kabosumama,’ the owner of Kabosu, the late Shiba Inu behind the famous Doge meme. This has spurred a wave of Neiro memecoins on Solana and Ethereum over the weekend. However, the owner has clarified that she is not associated with any of these tokens.

Further investigation reveals additional suspicious indicators. Notably, the token has direct connections to wallets outside its ecosystem, raising concerns about the possibility of funds being redirected or manipulated. Additionally, the liquidity pool for the Neiro token is not locked, which means that the funds could be drained without notice, posing significant risks to investors.

Senator Cynthia Lummis Proposes Bill for U.S. To Buy 5% of Bitcoin’s Supply

During the Bitcoin 2024 conference in Nashville on July 27, United States Senator Cynthia Lummis proposed a groundbreaking bill for the U.S. government to purchase 5% of the world's Bitcoin supply and hold it for at least 20 years.

"It can be used for one purpose, to reduce our debt," Lummis declared to an enthusiastic audience. She explained that the plan, if passed, would be rolled out over five years, with the government aiming to acquire one million Bitcoin, roughly 5% of the total 21 million Bitcoin supply.

At the current Bitcoin price of $69,662, this acquisition would cost approximately $73 billion, according to CoinMarketCap data. Lummis emphasized the long-term benefits of this investment, suggesting that holding Bitcoin, rather than traditional assets that depreciate by at least 2% annually, would offer significant value growth.

"This Bitcoin Reserve that we are going to create will start with the 210,000 Bitcoin that President Trump just mentioned and pull it into a reserve, stored in geographically diverse vaults, and that’s only the beginning," Lummis stated. She underscored the strategic shift from holding U.S. dollars to investing in Bitcoin, an asset she believes will appreciate over time.

Lummis is a well-regarded figure in the crypto industry, known for her pro-crypto stance. Her proposal received a warm reception from the Bitcoin 2024 conference attendees. "This is the solution, this is the answer, this is our Louisiana Purchase moment. Thank you, Bitcoin!" she exclaimed, eliciting cheers from the crowd.

Lummis's proposal comes on the heels of her recent report opposing the Biden administration’s proposed 30% excise tax on the energy consumed by Bitcoin miners. Released on July 23, the report titled “Powering Down Progress: Why A Bitcoin Mining Tax Hurts America,” argued that Bitcoin mining infrastructure is beneficial to the U.S. energy grid.

Bitcoin Nears $70K - What's Driving This Sudden Surge?

Bitcoin is once again making big moves, surging to $69,588 on July 29, 2024. The cryptocurrency is now just 6% shy of its all-time high set in March.

This rally comes after surprising political developments and shifting economic indicators.

Politicians’ Bitcoin Embrace at Bitcoin 2024 Conference

Former U.S. President Donald Trump, speaking at the Bitcoin 2024 conference in Nashville, pledged to create a "strategic Bitcoin reserve" if re-elected. He also promised to keep all government-held Bitcoin in reserve.

Trump's endorsement isn't isolated. Senator Cynthia Lummis proposed a plan for the U.S. Treasury to acquire 1 million Bitcoin, signaling growing mainstream political support.

Not to be outdone, independent candidate Robert F. Kennedy Jr., at the same conference, declared, "I am a huge supporter of Bitcoin. I have most of my wealth in Bitcoin. I am fully committed."

Kennedy's support for Bitcoin aligns with his libertarian-leaning views. He criticized the Federal Reserve, arguing that it serves the interests of bankers rather than the general public.

Economic Factors

Economic factors are also playing a crucial role. June's inflation data showed signs of cooling, with the PCE index rising just 0.1%.

This has fueled speculation about potential interest rate cuts.

The upcoming U.S. presidential election is adding another layer of excitement to the market. Some analysts predict Bitcoin's performance will closely correlate with Trump's election prospects.

As Bitcoin approaches $70,000, investors are watching closely. The combination of political backing, easing inflation, and institutional support has created a potent mix of bullish factors.

Michael Saylor Predicts $280T Bitcoin Market Cap at Nashville Conference

Michael Saylor, the executive chairman of MicroStrategy, delivered an optimistic keynote address on Friday at the Bitcoin 2024 conference in Nashville. Saylor forecasted that Bitcoin’s market capitalization could soar to $280 trillion by 2045, a staggering increase from its current valuation of just over $1 trillion.

In his address, Saylor emphasized the inefficiencies of traditional assets and systems in the global economy, advocating for Bitcoin as a superior store of value. He described Bitcoin as the “little orange asset that could,” highlighting its potential longevity compared to other assets. He noted that government-backed debt and luxury items like Ferraris have limited lifespans, whereas he believes Bitcoin can endure significantly longer.

Saylor argued that physical assets are subject to entropy, with their value being eroded by factors such as war, famine, and catastrophe. In contrast, he suggested that Bitcoin, particularly when self-custodied or managed with artificial intelligence, could have a useful life spanning thousands of years. This perspective underscores Saylor’s strategic shift to Bitcoin four years ago.

MicroStrategy’s aggressive acquisition of Bitcoin began following the market crash induced by the pandemic in 2020. The company has continually increased its Bitcoin holdings, recently adding around 12,000 Bitcoin in June when the price was approximately $65,000. This purchase marked MicroStrategy’s 39th acquisition since its initial Bitcoin purchase in August 2020 at around $12,000 per coin.

Trump Pledges Strategic Bitcoin Reserve at Bitcoin 2024 Conference

Republican candidate and former U.S. President Donald Trump announced his intention to create a “strategic Bitcoin stockpile” for the United States during his keynote address at the Bitcoin 2024 conference in Nashville. Addressing a room full of Bitcoin enthusiasts, Trump’s declaration came after a week of rumors and reports about his Bitcoin plans, though his announcement remained somewhat vague.

"As the final part of my plan today, I am announcing that if I am elected, it will be the policy of my administration, the United States of America, to keep 100% of all the Bitcoin the U.S. government currently holds or acquires into the future,” Trump said.

During his 45-minute keynote address, Trump promised to end what he described as the Democrats’ regulatory crackdown on cryptocurrency companies and holders. If elected, he vowed to transform the U.S. into a “Bitcoin superpower.” His declaration, “I'm laying out my plan to ensure that the United States will be the crypto capital of the planet,” was met with enthusiastic applause from the audience.

Trump warned that the regulatory challenges faced by crypto companies under the Biden administration would persist if his likely Democratic challenger, Kamala Harris, were elected. “If [the Democrats] win this election, every one of you will be gone,” he told the attendees. “They will be vicious. They will be ruthless.”

Trump’s Bitcoin reserve proposal also mirrors a policy endorsed by Robert F. Kennedy Jr. In a recent speech, Kennedy proposed that the federal government should acquire enough Bitcoin to match the value of the nation’s gold reserves. Kennedy criticized Trump’s changing views on cryptocurrencies but acknowledged the potential of a national Bitcoin reserve.

Altcoin Market Has Entered Reaccumulation Stage, According to Traders

Crypto traders are signaling that the altcoin market has entered a "reaccumulation stage," suggesting a potential move towards the "second leg of the cycle" after reclaiming a crucial support area. Independent crypto trader Mags noted on July 25 that altcoins have only risen by 58% since breaking out from a prolonged 525-day accumulation phase.

The accumulation stage is characterized by a market bottoming out, where prices reach local lows and stabilize. This phase is marked by a 33% drop in the TOTAL2 index, which tracks the total market capitalization of all cryptocurrencies excluding Bitcoin, since March 11. During this period, investors typically buy on dips, anticipating future price increases.

Mags shared a chart to illustrate that despite a recent correction, altcoins have surged 58% since emerging from their accumulation phase. This suggests there could be further upside potential. "This pullback is probably just reaccumulation before another leg up," Mags commented.

Data from Bitformance reveals that over the past three months, the top 200 equal weight index, which assigns equal weight to all cryptocurrencies regardless of market cap, has fallen by over 55% against the market cap index, where cryptocurrencies are weighted based on their market capitalization. This decline indicates that smaller cryptocurrencies have underperformed compared to Bitcoin, implying that the altcoin season has not yet commenced.

Bitcoin's market dominance, which measures its market share relative to the broader crypto market, is nearing a multi-year high. Currently, Bitcoin's dominance stands at 56.56%, up 3% over the past 90 days. This shift in market capital indicates that investors have been reallocating funds away from altcoins.

Robert F. Kennedy Jr. Proposes Massive Bitcoin Reserve for the U.S. Government

In a recent interview, Presidential candidate Robert F. Kennedy Jr. suggested that the federal government should acquire enough Bitcoin to match the value of the nation’s gold reserves. This comes as speculation mounts about President Donald Trump's intentions to establish a U.S. Bitcoin reserve.

Kennedy, an independent candidate, shared his vision during a conversation with Custodia Bank CEO Caitlin Long, hosted by YouTuber Scott Melker. He emphasized the integrity of Bitcoin as a currency, noting its decentralized nature and transparency. "Bitcoin is an honest currency," Kennedy stated. "It's based on proof of work, everything is on the ledger, and that’s what we need to do with democracy."

The U.S. government currently holds 8,134 tons of gold, valued at approximately $615 billion. To match this value in Bitcoin, the government would need to procure around 9.4 million BTC at current prices, which represents nearly 45% of the total Bitcoin supply.

Kennedy’s plan aligns with his broader strategy to back both government currency and debt with a mix of hard assets, including gold, silver, platinum, and Bitcoin. He elaborated on this idea, proposing a new class of U.S. Treasury bills anchored to this basket of assets. The anchoring would start at 1% in the first year, increase to 2% in the second year, and ultimately reach 100% over time.

The ambitious Bitcoin acquisition would be carried out during Kennedy’s first four years in office. "I would like to have the federal government begin to buy Bitcoin and over my term in office, ultimately have an equivalent amount of Bitcoin that we have gold," he said.

If implemented, this plan would make the United States the largest Bitcoin holder globally. Currently, the largest corporate Bitcoin owner is MicroStrategy, with 226,331 BTC valued at $14.41 billion. The world's largest Bitcoin ETF, managed by BlackRock, holds 334,000 BTC worth $21.73 billion. The U.S. government’s potential holdings would dwarf these figures.

10X Research: Wall Street Struggles to Define Ethereum ETFs' Value

A new report from 10X Research reveals that Wall Street is facing challenges in effectively communicating Ethereum’s value to potential investors, following the highly anticipated launch of Ethereum spot ETFs. BlackRock has attempted to market Ethereum (ETH) as "a bet on blockchain technology." However, this framing seems to fall short with traditional investors.

"Wall Street professionals typically avoid betting on things they don't fully understand," the report notes. This uncertainty is evident in the market's response, as Ethereum ETFs experienced a total net outflow of $133 million on July 24. The Grayscale Ethereum Trust (ETHE) alone saw a net outflow of $327 million. However, this was partially offset by inflows into Grayscale's Mini Ethereum ETF, which attracted $46 million, and Fidelity's Ethereum ETF, which brought in $74 million.

Despite Ethereum's status as the second-largest cryptocurrency by market cap, its price has not reflected the enthusiasm surrounding the new ETFs. Ethereum has dropped 8.2% over the past week since the ETFs began trading, leading investors to question when, or if, the price will start to rise due to increased demand from these funds.

The report from 10x Research highlights the lack of a compelling narrative for Ethereum, contrasting it with Bitcoin's well-known "digital gold" reputation. The research firm remains bearish on Ethereum, citing stagnant or declining fundamentals such as new users and revenues.

Trump Campaign Surges with $3 Million in Crypto Donations in Q2 2024

Donald Trump's reelection campaign has received approximately $3 million in digital assets contributed since the former president announced he would accept such donations. According to a Federal Election Commission (FEC) filing for the second quarter of 2024, the Trump 47 Committee received these crypto contributions from around 20 individuals starting in May. The FEC filing did not cover contributions from July or crypto donations to other committees.

Among the most significant donors were Gemini co-founders Cameron and Tyler Winklevoss, who pledged a combined $2 million in Bitcoin on June 20. Kraken co-founder Jesse Powell committed $1 million in Ether on June 28. FEC records show Powell's contribution exceeded $844,000, while the Trump campaign had to partially refund the Winklevoss twins' Bitcoin donation due to contribution limits, which cap individual donations at $844,600.

Ryan Selkis, the former CEO of Messari, who resigned on July 19 after making controversial statements on social media, contributed $50,000 in USDC. Ripple’s chief legal officer, Stuart Alderoty, donated $300,000 in XRP. Despite Alderoty’s significant contribution, his social media activity has not indicated support for Trump, though he has been a vocal critic of the Securities and Exchange Commission and its chair, Gary Gensler, under the Biden administration.

The Trump 47 Committee reported raising over $118 million in both cryptocurrency and fiat for the second quarter, contributing to a total of more than $142 million for 2024. While there were rumors that President Joe Biden might accept crypto donations for his reelection campaign, he announced on July 21 that he would not seek another term, instead endorsing Vice President Kamala Harris. Following Biden’s announcement, Harris, now the presumptive Democratic nominee, reportedly raised over $100 million in just 24 hours.

Since surviving an assassination attempt at a Pennsylvania rally on July 13, Trump has secured his official nomination at the Republican National Convention. He is also scheduled to speak at the Bitcoin Conference in Nashville on July 27.

What Happened in Crypto Today: What’s Going on With Bitcoin?

After every bullish week, there's a bear lurking in the shadows.

But you've seen it before, right? The charts were green, your portfolio was soaring, and life was good. Then suddenly, the crypto took a nosedive.

But hey, that's just how the crypto works. One minute you're on top of the world, the next you're wondering if you should've stuck to your day job.

So, what's causing this latest dip? Is it just another blip on the radar, or should we be battening down the hatches?

Let's get a clearer picture:

Why Are the Prices Dipping?

Crypto's clearly taking a breather after making some wild moves during the past 10 days.

Bitcoin and Ethereum just dipped, triggering $250 million in liquidations.

According to data on CoinMarketCap, there has been a decrease in the number of wallet addresses holding over $100K worth of Bitcoin.

However, whale holdings (typically defined as addresses holding over 1% of circulating supply) remained stable. This suggests that while some mid-tier investors may be selling or redistributing their holdings, the largest Bitcoin holders are maintaining their positions, indicating confidence in the long-term prospects of the cryptocurrency (you can track this data and other on-chain metrics under CoinMarketCap’s analytics section to incorporate it into your broader analysis for making informed investment decisions).

Now if you are still panicking and confused, let's zoom out a bit.

This pullback isn't happening in isolation. The broader U.S. market took a hit too, with the Nasdaq Composite dropping 3.65% - its sharpest decline since October 2022.

So what's going on?

Well, it seems the tech sector's getting a reality check. Google's parent company Alphabet and other tech giants reported higher-than-expected expenses, spooking investors.

Now, you might be wondering why crypto prices are taking a hit alongside stocks.

It's simple: crypto and traditional markets are interconnected in this case. When big investors get nervous about tech stocks, that anxiety often spills over into crypto.

Many institutional players view Bitcoin and Ethereum as part of their broader tech portfolio. So when they decide to reduce risk, crypto often gets trimmed along with other high-growth assets.

But here's where it gets interesting for crypto. Despite the short-term turbulence, some analysts are still bullish on Ethereum. They're drawing parallels to Bitcoin's post-ETF launch performance earlier this year.

ETH Could Hit Its All-Time High Soon If It Follows BTC’s Foot Steps

Remember when Bitcoin hit its all-time high just two months after spot ETFs launched? Some think Ethereum might follow a similar trajectory.

Speaking of ETFs, the newly launched spot Ethereum ETFs are already making waves. While they saw some outflows on day two, it's worth noting that seven out of eight ETFs still posted net inflows.

The wild card here is Grayscale's converted Ethereum Trust. It's been bleeding assets, which isn't surprising given its previous six-month lock-up period.

So What Can We Learn From History?

Well, when spot Bitcoin ETFs launched, we saw a similar pattern of initial volatility followed by substantial gains.

The key takeaway? Short-term pain doesn't necessarily mean long-term doom. In fact, some traders are eyeing this dip as a potential buying opportunity (NFA).

What You Can Do in This Market

First, closely monitor on-chain metrics like wallet address distributions and whale holdings. You can do so here.

Pay attention to the interconnection between crypto and traditional markets, particularly tech stocks, as this relationship can influence price movements.

Lastly, consider the historical pattern of volatility followed by gains after significant events like ETF launches.

While this information shouldn't be treated as financial advice, it can help you form a more comprehensive view of the current market dynamics.

Now that you understand why the charts look red, let's take a break and catch up on today's top crypto news.

Here's your TLDR of today's headlines:

Ethereum ETFs debut with $100M, but only 10-20% of Bitcoin ETFs' first-day performance. What exactly prevented this ETF’s success? 🤔

Franklin Templeton hints at Solana ETF, praising its adoption and architecture. Have they already filed applications for Solana ETF? Or is it just talks?  🌞

Bernstein analysts spotlight 12 Bitcoin mining stocks with potential for significant upside. But can miners really close the 90% valuation gap with data centers? ⛏️

Base deploys fault proofs on Sepolia testnet, aiming for "Stage 1" decentralization. Could this upgrade possibly make Base a hub of upcoming projects?  🌊

Ether ETFs' Debut: Solid Start, But Not Anywhere Near Bitcoin

Ethereum ETFs have hit the ground running, but they're not exactly breaking the sound barrier.

These new ETFs pulled in over $100 million on day one.

But let's put that in perspective - it's only 10% to 20% of what Bitcoin ETFs managed on their debut back in January.

But why?

Adrian Fritz from 21Shares has the answer. Bitcoin's got that "digital gold" story that's easy to sell. Ethereum? It's like trying to cover quantum physics in 12 minutes. There's a lot more educating to do.

So there is no hope for ETH ETFs? Or are we missing something? Read the full story!

Franklin Templeton's Now Eyeing Solana ETF

Franklin Templeton dropped a hint on X about "significant developments" beyond Bitcoin and Ethereum.

And guess who's the star of the show? Solana.

They are praising its adoption, maturity, and high-throughput architecture.

Have they already filed applications for Solana ETF? Or is it just talks? Read the full story!

12 Bitcoin Mining Stocks in the Spotlight

Bernstein's analysts just released a research note on Bitcoin mining.

They've put 12 Bitcoin mining companies under the microscope.

The big takeaway? These miners could slash their 90% valuation discount compared to regular data centers. All they need to do is get smarter about power usage and efficiency.

The analysts think there's "significant upside" in upgrading to the latest mining chips.

Wondering which mining stocks are gold according to these analysts? Read the full story!

Base Is Making Moves Too!

Coinbase's Layer 2 darling, Base, is taking a big step.

It just deployed fault proofs on the Sepolia testnet.

Right now, Base is still in what Vitalik Buterin calls "Stage 0" decentralization - only Base's centralized proposer can submit the network's state to Ethereum for validation.

But this new move? It's aiming for "Stage 1" decentralization. That means anyone could propose or challenge Base's state.

Base is pretty excited about this. They're calling it a "major step" and a "crucial launch."

Could this upgrade possibly make Base a hub of upcoming projects? Read the full story!

Spot Ether ETFs See Strong Start on Debut But Falls Short of Bitcoin ETFs, Says Analyst

Spot Ethereum exchange-traded funds (ETFs) saw over $100 million in net inflows on their first trading day, July 23. While this strong start is notable, it falls short of the impressive debut of Bitcoin ETFs in January, and analysts suggest Ether ETFs might face more challenges in gaining traction among traditional investors.

The initial inflows for Ether ETFs ranged between 10% to 20% of what Bitcoin ETFs achieved on their first day. This outcome aligns with expectations given Bitcoin's larger market capitalization but raises concerns about Ether's appeal to traditional investors. Adrian Fritz, head of research at 21Shares, a major issuer of both BTC and ETH ETFs, noted, "The Bitcoin Spot ETF has set new standards as the most successful ETF launch in financial history."

Fritz pointed out that Bitcoin's narrative as an emerging store of value is simpler and more widely understood, whereas Ethereum's value proposition is more complex, requiring more educational efforts to attract investors. Despite these challenges, Fritz remains optimistic about Ethereum's potential to draw significant institutional interest.

The strong initial inflows into Ether ETFs helped ease market concerns surrounding their launch. The Ethereum Volmex Implied Volatility (EVIV) index, which measures the 30-day expected volatility of ETH, dropped by 4 points to around 65 within 24 hours of the ETFs' listing, according to CoinMarketCap. Cole Kennelly, founder of Volmex Finance, explained that the market had been pricing in uncertainty before the ETF launch, but the subsequent "volatility crush" suggests that ETF flows might stabilize ETH spot markets.

Among the new spot Ether ETFs, BlackRock's iShares Ethereum Trust ETF (ETHA), the Bitwise Ethereum ETF (ETHW), and the Fidelity Ethereum Fund (FETH) led the pack in terms of inflows. According to Bloomberg data, these funds pulled in approximately $266 million, $204 million, and $71 million, respectively.

However, these inflows were partially offset by significant outflows from Grayscale's legacy fund, ETHE, which saw around $484 million in outflows. Launched in 2017 under a different fund structure, ETHE charges a management fee of 2.5%, significantly higher than the newer spot ETH funds. In total, the eight new spot Ether ETFs listed on July 23 attracted approximately $590 million in net inflows.

Coinbase's Base Deploys Fault Proofs on Testnet in Progress Towards Decentralization

Base, the Ethereum Layer 2 network developed by Coinbase, announced the deployment of fault proofs on the Sepolia testnet on July 23, marking a critical step in its journey towards "Stage 1" decentralization.

Currently, only Base’s centralized proposer has the authority to submit the network’s state root to the Ethereum mainnet for validation, a system Ethereum co-founder Vitalik Buterin refers to as Stage 0 decentralization. The introduction of fault proofs on the mainnet will enable permissionless state validation, allowing anyone to propose or challenge Base’s state, thereby reaching Stage 1 decentralization.

The recent deployment is a pivotal move forward. “We’re taking a major step towards the next phase of decentralization: fault proofs are now live on the Base Sepolia testnet,” Base stated. “This launch is crucial for securely bringing fault proofs to the mainnet and achieving other milestones needed for Stage 1 Decentralization.”

“Fault proofs are essential for community-driven accountability and control, reducing reliance on a centralized party for state verification,” Base explained. “Launching fault proofs on the Sepolia testnet allows us to conduct additional testing to ensure a secure transition to the mainnet.”

Buterin describes Stage 1 decentralization as maintaining “limited training wheels,” where a centralized security council, comprising external stakeholders like prominent ecosystem and community members, has the authority to override fault proofs in case of bugs. These overrides require approval from both the chain operators and the security council. Stage 2 decentralization is achieved when state root changes can only occur in the event of a bug, with all contract upgrades subjected to a 30-day delay.