BITCOIN’S SHOWING SIGNS OF RECOVERY! (Sleeping lion bounce?)
…Over the last week Bitcoin price increased 22.15%, Ethereum 51.86%, BNP 20.33%. They live!
Straight out of Owlton, I, everyone’s favorite Crypto Owl, am bringing you the latest and the spiciest info pieces from the crypto land. Let’s get into it!
On Today’s Menu:
👩🍳 CHEF’S SPECIAL: Bitcoin rose over 200 weekly moving average. Have we survived the ‘winter’?
🍹 PROTEIN SMOOTHIE: Something’s fishy going on with USDC
🍸 GLASS OF MARTINI: Ripple co-founder gets over it with XRP selling
🥦 DAILY VITAMINS: Top 5 Crypto News
🍭 SOMETHING FOR YOUR SWEET TOOTH: Problem with Tether (USDT) | Is It Next to Fail?
BITCOIN RISES ABOVE 200 WEEKLY MOVING AVERAGE - IS IT HAPPENING?
Bitcoin’s price has increased and currently sits around $23645 while the 200 WMA is $22715,15. As mentioned in the previous newsletters, the 200 Week Moving Average is a very useful indicator that can give us a firmer grip on what on earth is happening in the market. Historically, Bitcoin hitting the 200 WMA signaled its price has bottomed, meaning the market can be expected to recover. So, at first glance, this might look like the phoenix has already begun rising from its ashes.
But not so fast. There may be some underwater currents that could mess things up for those who aren’t careful.
Emm… What does that mean?
Market observers have spotted something unusual taking place. A whopping $361,686,300 worth of BTC was sold yesterday from a single wallet. And that’s a record. Analysts believe the current Bitcoin recovery to be a short-term glimmer of hope for the naive and the inexperienced. If similar sell-offs continue, we’ll see the BTC price falling to the 200 WMA levels, if not further.
So… are the whales responsible for the BTC price?
Far from it. As August approaches, the Mt. Gox Bitcoin Dump is already getting closer. For those who’ve missed it: it’s expected that Mt. Gox, an infamous crypto exchange hacked back in 2014, is about to begin the repayment process for their customers, which could result in 142,000 BTC suddenly being released back into the market. To put that in US dollars, it’s about… $3 Billionish… If the majority of these assets would get liquidated fastly… The BTC price would take a hit.
So yeah, seeing price charts turning green may give hope, but in reality, it’s far too early to celebrate the bear market's end.
Has the overall market sentiment changed?
Indeed it has, and significantly. It’s not like today’s Fear & Greed Index is glowing with the green color, but finally, we see ‘Fear’ instead of ‘Extreme fear’, and it confidently sits on the score of 31. This subtle change is essential since Bitcoin’s longest ‘extreme fear’ streak has ended. It lasted for 73 days!
Our take:
Taking a look from a zoomed-out perspective, you can tell that there’s space for optimism but not for the hype. Many may join the ‘Bull market is here’ chorus, which can result in FOMO taking over people’s minds, getting them to believe that it’s ‘either now or never. But the reality is far more complex, and there’s a reason quite a several experts believe Bitcoin is likely to hit $10,000 before actually recovering.
The key takeaway here is this: it’s too early to celebrate, and it’s too early to stop being sad. At best, we’re in limbo.
So that’s the general screenshot of the current situation. But oh man, if you look into things on a more practical level, you can always find something more just waiting to happen.
SOMETHING’S GOING ON WITH USDC
Coinbase, one of the major cryptocurrency exchanges, just announced ‘USD and USDC Unification.’ The official announcement revolves around explaining how such changes are implemented to make the whole trading experience more seamless, and in practice, this will allow users to deposit USD or USDC so that if someone wants to withdraw their funds, they’ll be able to choose which coin they want their withdrawal to be in.
To put it simply: unification of two stablecoins.
But there might be something else going on here. If you check out what trading pairs are offered on Coinbase, you’ll notice that the options are VERY limited. And it wasn’t always like this. Yet, if you compare the number of trading pairs available with USD… The number is significantly higher. So the unification explanation doesn’t cut it.
Something’s happening with USDC or Coinbase, or both. It’s not yet clear what exactly, and it could be suspected that we’re about to find out pretty soon. Because, essentially, trading pairs with USDC were suspended. For example, CoinGecko doesn’t list a single pair with USDC in it available on CoinBase.
What’s up with that?
The outtake is that something is going on with USDC, or Coinbase, that the public hasn’t yet been informed about. But at the end of the day, the situation looks like one of the major stablecoins is being pushed out of the game for some reason or another.
Its accessibility and public representation are being limited, and despite calling such changes ‘unifications’, this is in no way a PR victory for USDC. We’ll keep our eye on this and be sure if something resurfaces… The Owl will be flying above the speed limit to bring you the updates.
RIPPLE CONFIRMS THAT FORMER FOUNDER JED McCaleb JUST SOLD HIS REMAINING XRP HOLDINGS
Jed McCaleb, who co-founded Ripple in 2012, has been in the epicenter of some real drama for quite some time now. Soon after co-founding the company, Jed got into a serious beef with other co-founders (official Ripple’s statement defines this moment as ‘their visions did not align), and he quit.
But that wasn’t the end of it. Just after the creation of Ripple, Jed, together with other co-founders, received 9 billion units of XRP. But in 2013, just after the drama began, he declared that he was about to sell off his XRP ‘as quickly as possible. Legal conflicts ensued, but an agreement was reached: McCaleb had to sell his stash at a limited rate. This rate was determined by the daily volume of the XRP market, which increased yearly.
The logic behind such an agreement was understandable: to prevent sudden price fluctuations. And it worked. During the tedious process, the XRP price fluctuated between $0.22 and $1.84. And currently, with ‘crypto winter’ still being with us, XRP performs steadily, and when it went down, it wasn’t something significantly different from the rest of the main players (over the past year, XRP was down 39%).
This means that XRP dumping is about to slow down, which is great news for XRP holders.
Well, it seems like today is quite a positive day! Well, but this is crypto, and one thing here is certain: nothing is certain. So we better brace ourselves because you never know what tomorrow brings.
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Disclaimer: This newsletter is strictly educational. None of this information is intended to be financial advice. Always do your own research and act responsibly with your profits.