Tag: HOLDING

Why Ethereum Whales Selling Their Holdings?

by Blockchain News

Blockchain analytics company Santiment released data on Sunday showing that large Ethereum investors are actively dropping their holdings and have already sold over $4.2 billion worth of the coins in the last five weeks.

According to the data, Ethereum (ETH) shark and whale address holdings have reduced by more than 3 million ETHs in the last five weeks. In other words, the count of Ether addresses holding 100 to 1 million ETHs has dumped $4.2 billion worth of Ethereum during the same period of time.  

Dumping has played a role in influencing a significant drop in the value of ETH by around 25% since the middle of September.

The data indicates that Ethereum whales have maintained redistribution of their holdings on the market since the successful Merge update. This might have been the key reason for the intense selling pressure that drove the value of ETH to the level it reached currently.

However, since whales and sharks now own fewer coins than they did before, they will most likely push the price of the asset higher in the coming days. Normally, large investors tend to buy back the assets they have sold in the past.

The flow of crypto onto exchanges typically reflects bearish sentiment and is often done by traders to take a profit by selling their tokens, indicating that whales expect the prices to drop further in the near future.

Thanks to the Merge upgrade, the supply of Ethereum is now deflationary, but prices are still struggling, according to data from Ultrasound.Money. Since on October 11 last week, ETH’s supply has dropped by over 4,000 tokens, but there is still no corresponding price boost. Despite a lowered supply, Ether’s price has dropped around 25% in the month since the Merge. At the time of writing, Ether’s price was trading at $1,284.41.

Last Friday, Ethereum co-founder and ConsenSys CEO Joe Lubin explained that after the Merge, Ether price action was a kind of sell activity along with some Ethereum miners “unloading their ether inventory as they shut down their rigs” after Ethereum blockchain migrated to proof of stake mechanism. The executive further pointed fingers at inflation and other macroeconomic events for the continued drop of ETH price along with Bitcoin and the rest of the crypto market.

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Bitcoin’s Consolidation Continues amid Addresses Holding BTC Scaling the Heights

by Blockchain News

Bitcoin has consolidated between the $38K and $45K zone for the past two months, as indecisiveness continuously rocks the market.

On-chain analyst Will Clemente acknowledged:

“BTC has been in this consolidation pattern for 2 months.”

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Source: TradingView

Market analyst Lex Moskovski shared similar sentiments, describing the current BTC market as “the mother of all consolidations.” He noted:

“The mother of all consolidations. On-chain volume at $39k is the largest in the entire history of Bitcoin. Record 775k BTC changed hands at around $38.7.”

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Source: Glassnode

Moskovski added that Bitcoin had moved around $39,000 more than any other price in its 13-year journey based on the high on-chain volume recorded.

The leading cryptocurrency was down by 1.5% in the last 24 hours to hit $38,419 during intraday trading.

Bitcoin addresses continue soaring the heights

Despite the consolidation happening in the market, BTC addresses continue going through the roof. Data analytic firm IntoTheBlock explained:

“The number of addresses holding BTC continues setting new records. Bitcoin addresses with a balance reached a record of nearly 40 million. Even as BTC has remained on a downwards trend in 2022, the network added a total of 888,000 new addresses with a balance.”

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Source: IntoTheBlock

BTC long-term holders have been leading the pack in accumulating more coins. On-chain analyst under the pseudonym Checkmate stated:

“Bitcoin long-term holders are adding to their balance at an annualized rate of 7.6x issuance. With ~900BTC in mined issuance per day, this means around 6,840 BTC is moving into LTH storage daily.”

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Source: Glassnode

Meanwhile, large institutional transactions have been dominating Bitcoin volume at 99%. Institutional investments have played an instrumental role in revolutionizing the BTC ecosystem. For instance, they enabled the leading cryptocurrency breach the then all-time high of $20,000 in December 2020 after three years of waiting.

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Ethereum Needs to Hold $2,800 for Sustainable Bullish Momentum

by Blockchain News

With Ethereum being treated like a stone’s throw away from the psychological price of $3,000, its upward momentum continues to gain steam.

The second-largest cryptocurrency based on market capitalization was up by 22.21% in the last seven days to hit $2,911 during intraday trading.

Nevertheless, Ethereum needs to continue holding the $2,800 level for a sustainable upward trend. Market analyst Ali Martinez explained:

“On-chain data from IntoTheBlock shows that as long as ETH remains trading above $2,800, ETH has a good chance of recovering and advancing further because there is no major supply barrier ahead.”

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Source: IntoTheBlock

On the other hand, a bullish sign continues to pop up, given that Ethereum has been leaving crypto exchanges in droves. Data analytic firm IntoTheBlock acknowledged:

“ETH has seen 7 days of consecutive outflows from exchanges. As the price increases, the supply available to buy from exchanges has been decreasing non-stop in 2021. Over 327,000 ETH left exchanges since Feb 22nd.”

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Source: IntoTheBlock

Whenever cryptocurrencies leave exchanges, a holding culture is demonstrated because they are usually transferred to cold storage and digital wallets for future purposes. Therefore, this is a bullish sign because selling pressure gets tamed.

As Ethereum continues trading above the psychological price of $2,500, whether the $3,000 level will next remain to be seen. 

Meanwhile, the much-awaited Ethereum’s proof of stake (PoS) consensus mechanism is deemed a game-changer that will prompt the adoption of energy-efficient technology. A recent review by the Massachusetts Institute of Technology (MIT) ranked Ethereum’s PoS among the top 10 technological breakthroughs of 2022.

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Small Bitcoin Holders are Stacking amid Visa’s Crypto-Linked Card Payments Hitting $2.5B

by Blockchain News

Given that holding is a favored strategy in the crypto space, accumulation by small Bitcoin (BTC) holders continues to gain steam.

Lex Moskovski, the CIO of Moskovski Capital, confirmed:

“Bitcoin small holders (1-10 BTC wallets) have been stacking since the 2021 summer crash. What is interesting, they are still stacking now, completely unaffected by the current dip. Nice divergence.”

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Source: Glassnode

 

A similar trend is being witnessed because Bitcoin whale addresses have accumulated 60,000 BTCs in the last two months despite the leading cryptocurrency not finding its right footing since the start of the year.

 

Nevertheless, bullish signs keep on blinking, given that Bitcoin’s daily relative strength index (RSI) is on the verge of breaking out of a downward trend. On-chain analyst Matthew Hyland explained:

“Bitcoin daily RSI is currently breaking out of the multi-month downward sloping resistance. The two previous breakouts during the past year have led to massive bullish moves.”

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Source: TradingView

 

Lark Davis echoed similar sentiments. The crypto analyst noted:

“Bitcoin is trying to break out of its downtrend on the RSI. The last time this happened, the price rallied by 130%.”

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Source: TradingView

 

Meanwhile, Visa announced that payments associated with its crypto-linked cards skyrocketed to $2.5 billion during its fiscal first quarter of 2022. This represents 70% of Visa’s crypto volume for the entire 2021 fiscal year. 

 

Vasant Prabhu, the company’s CFO, welcomed this move and stated:

“Looking at the broad categories of spend, we don’t see the volume concentrated in a specific merchant vertical with these programs. People are using their crypto-linked cards to spend in a variety of ways — retail goods and services, restaurants, travel. They’re increasingly being treated as a general-purpose account.”

Visa has been in the front line in aiding crypto adoption. 

 

For instance, as part of efforts to expand the knowledge base of its clients and partners in their cryptocurrency journey, the payment giant introduced a global crypto advisory practice as part of the consulting & analytics department late last year. 

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82% Ethereum Holders Still in Profitability Despite Price Slipping Below $4,000

by Blockchain News

Despite dropping below the psychological price of $4,000, 82% of Ethereum (ETH) holders continue being in profit, according to data by market insight provider IntoTheBlock. 

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ETH was down by 5.04% in the last seven days to hit $3,712 during intraday trading, according to CoinMarketCap.

This year, the second-largest cryptocurrency has made significant strides thanks to various use cases on its network. For instance, it scaled the heights and soared to historic highs of $4,850 last month.

Furthermore, Ethereum has yielded an annual return more than five times that of Bitcoin. ETH has a yearly return of 406% so far compared to Bitcoin’s 72.1%, according to CoinGecko. 

Raoul Pal, the CEO and founder of Real Vision, opined that Ethereum has outperformed Bitcoin based on the burning mechanism and staking happening on its network. He explained:

“Burning + Staking + maintained volume is why ETH has outperformed BTC by 4x in 2021. But with no net real new capital flowing into the space, attention moves to other chains which also have PoS but earlier network adoption, taking volumes away from both BTC and ETH.”

The burning mechanism was introduced by the London Hard Fork or EIP 1559 upgrade in August, which has aided in reducing Ethereum’s annual inflation rate to 1.4%. Ethereum is burnt every time it is used in transactions, making scarcity inevitable. 

 

On the other hand, the Ethereum 2.0 deposit contract launched in December 2020 made staking a possibility on the ETH ecosystem, given that it seeks to transit the current proof of work (PoW) consensus mechanism to a proof of stake (PoS) framework.

 

It is touted as a game-changer because Ethereum 2.0 full upgrade is expected to trigger a 1% annual deflation rate.  

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Bitcoin Needs to Reclaim $53,000 before a Bull Run to be Reignited

by Blockchain News

Bitcoin has been dragging between $47K and $50K levels recently. Crypto experts believe the bull market might be triggered until the primary token return to the $53K level.

Slightly over a week ago, Bitcoin (BTC) plummeted to lows of $42,000 following massive liquidations of approximately $2.2 billion in a span of twelve hours. This move stunned the crypto market because these huge liquidations were made on December 4 as the second-largest daily shed off in 2021 after a 50% price drop was witnessed on May 19. 

With the price staying below the short-term holder (STH) cost basis for nearly a week, on-chain analyst Will Clemente believes that Bitcoin needs to reclaim the $53K area if a bull run is to be reignited. He explained:

“We have spent almost a week now below STH cost basis. Still not a bull until $53K is reclaimed. I’m not a giga bear, just cautious until shown otherwise. Bear confirmation would be a failed underside retest.”

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STHs have also been moving or selling BTC at a loss. Economist Jan Wuestenfeld indicated:

“Short term holders continue to on average move/sell Bitcoin at a loss since the price crash at the beginning of December as the short term holder SOPR shows.”

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On the other hand, long-term holders have not been influenced by panic selling, given that their liquidation has been at a healthy margin. 

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On-chain analyst Dylan LeClair had previously stated that short-term holders’ cost basis stood at $48,450, wherelong-term holders werewas $17,750.

Cost basis is the purchase price or original value of an asset. It is used to calculate capital gains or losses. Notably, long-term BTC holders have emerged to be notable players in the Bitcoin ecosystem. 

For instance, a study previously showed that Bitcoin supply was steadily maturing to long-term holders, given that nearly 2 million BTC had transitioned from short-term to long-term holders from the time the then ATH price of $64.8K was attained in mid-April.

Bitcoin recently broke this record by hitting highs of $69,000. 

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Ethereum Supply on Exchanges Diminish to 12%, Signifying a Holding Culture

by Blockchain News

Despite retracing from an all-time high (ATH) price of $4,860 recorded earlier this month, Ethereum supply on exchanges continues to nosedive.

On-chain analyst Matthew Hyland confirmed:

“The amount of Ethereum supply on exchanges is crashing further down. Only 12% of the Ethereum supply is now left on exchanges.”

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Whenever coins leave crypto exchanges, they are stored in cold storage or digital wallets for future purposes, which signifies a holding culture. 

 

Ethereum is also being locked in booming sectors like non-fungible tokens (NFTs) and decentralized finance (DeFi) because it offers features like smart contracts. For instance, Ethereum takes the lion’s share in the total value locked (TVL) in DeFi, according to ranking and metrics provider DefiLlama. 

 

Ethereum outweighs Bitcoin in terms of Google search interest in the US

According to market analyst Evan Van Ness:

“Over the last month, ETH has flipped BTC a few times in Google search interest in the US. The flippening is a series of many little flips before the permanent one.”

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This shows that interest in Ethereum continues to gain steam because of various use cases. For instance, the Ethereum Name Service (ENS), a crypto domain based on the ETH blockchain, has generated revenue worth nearly 20 million since its launch in May 2017.

 

ENS can be regarded as the blockchain correspondent of the Domain Name System (DNS).

 

Furthermore, more participants are joining the ETH network, given that the number of non-zero Ethereum addresses recently reached an ATH of 68,756,137. 

 

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Meanwhile, the second-largest cryptocurrency ought to surge past the $4,600 level for new highs to be reached. Data analytic firm IntoTheBlock explained:

“On the resistance side, it appears that on the path to a new ATH, the most significant level of resistance is located around $4,653. Around that level, more than 489k addresses are holding 2.52m ETH. Surpassing that level might lead ETH towards new highs.”

With $5,000 forecasted as the largest open interest strike price for Ethereum options in 2021, whether this will be attained before the end of the year remains to be seen. 

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Bitcoin Supply in Profit Drops to 83%, Short-Term Holders Blamed to be the Primary Culprits

by Blockchain News

Bitcoin (BTC) has been correcting since it surged to an all-time high (ATH) of $69K earlier this month.

This retracement has triggered a 17% loss in Bitcoin supply, with short-term holders who bought the top being the primary culprits.

Market insight provider Glassnode explained:

“When the Bitcoin market experiences a large sell-off, the change in profitable supply indicates how many coins have an on-chain cost basis above the current price. Since the ATH, over 17% of the BTC supply has fallen underwater, leaving 83% of the supply in profit.”

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On the other hand, the short-term holder SQPR indicator has fallen below 1, which illustrates that top-buyers are spending their Bitcoin holdings at a realized loss.

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However, all is not lost in the Bitcoin market because the leading cryptocurrency is still in an ascending channel even if the price drops to the $54,000 level. This price pattern shows higher highs and higher lows, which signifies an uptrend. 

Long-term BTC holders are not in a panic mood

Long-term BTC holders remain unfazed about the sell-off in the Bitcoin market because they are not spending their coins in agitation. Glassnode acknowledged:

“However, even after a near 20% correction (-$13.5K) off the ATH, Long-Term Holders do not appear to be spending their coins in panic. After peaking at 13.5M BTC, LTHs have only distributed 100K BTC over the last month, representing just 0.7% of their total holdings.”

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Daniel Ferraro, a researcher at IntoTheBlock, echoed these sentiments and said:

“Don’t get shaken out by the recent price action in Bitcoin. Strong long-term investment conviction: The number of Bitcoin hodlers is currently at an ATH (60.54% of the total holders). Since Friday, ITB Netflows indicator spotted that almost 20,000 BTC left centralized exchanges.”

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Meanwhile, $100,000 is still forecasted as the largest strike price for Bitcoin options this year. 

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Bitcoin Addresses Holding for More Than a Year Hit an ATH with 10.15 Million BTC

by Blockchain News

Even though Bitcoin (BTC) slipped below the psychological price of $60,000 for the first time in more than two weeks, long-term holders remain unfazed as their accumulation continues to break the record.

Daniel Ferraro, a researcher at IntoTheBlock, explained:

“Despite BTC touching the mid’s $58K, the long-term investment vision amongst Bitcoin holders remains unfazed. The number of addresses holding BTC >1yr is currently at an ATH, increasing consistently over the past 12 months and accumulating at the dips. They hold 10.15 million BTC.”

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Long-term Bitcoin holders have emerged as one of the biggest beneficiaries with a lower cost basis of $17,750. The cost basis entails the purchase price or original value of an asset. 

Therefore, long-term holders have surfaced as significant players in the crypto space. 

Meanwhile, BTC funding and open interest (OI) have experienced a substantial drop, which shows less speculation in the market.

Data analytic firm IntoTheBlock noted:

“The Perpetual Swaps Funding Rates are considerably lower than the ones experienced during the first 4 months of 2021. This is a sign of less speculation and deleveraged markets, leading to a stronger range consolidation for BTC.”

Bitcoin miners revenue hit $1.818 billion in October

According to on-chain analyst Dylan LeClair:

“Bitcoin miners mined $1.818 billion worth of BTC over the last month. The revenue total over the last month is larger than any 30-day period in the history of the network.”

This shows that BTC miners have gotten back on their feet after being given a heavy blow following China’s intensified crypto mining crackdown in May.

During the same time, Bitcoin’s price went below the 200-day moving average (MA) for the first time since March last year after plummeting to lows of $30K. The 200-day MA shows an average of roughly 40 weeks of trading and helps in determining the general market trend. 

As Bitcoin mining remains unwelcome on Chinese soil, Bitcoin miners have found the right footing in other countries like the United States, Kazakhstan, and Iraq. 

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Ethereum Shifting to Cold Wallets for DeFi-Related & Holding Activities

by Blockchain News

This quarter has been rewarding to Ethereum (ETH) because it is now an asset with a market capitalization of more than $500 billion. Continued adoption has played an instrumental role in enabling Ethereum’s value to rise because it is one of the sought-after networks in the non-fungible token (NFT) and decentralized finance (DeFi) sectors.

Furthermore, ETH supply on exchanges has been shrinking, which has been pivotal in Ethereum’s price rally. Crypto analytic firm Santiment acknowledged:

“Ethereum’s supply on exchanges sits at 15.66%. One year ago, this number sat at 23.29%. It’s clear that more and more ETH is moving safely to cold wallets for DeFi-related activity and hodling, an encouraging sign for long-term price prospects.”

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Market insight provider Glassnode echoed these sentiments and noted that ETH balance on exchanges dropped to a 3-year low. 

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Investments in Ethereum 2.0 continue going parabolic

According to Glassnode:

“Total value in the ETH 2.0 deposit contract just reached an ATH of 8,240,450 ETH.”

Ethereum 2.0, also known as the Beacon Chain, was launched in December 2020 and was regarded as a game-changer that sought to transit the current proof-of-work (POW) consensus mechanism to a proof-of-stake (POS) framework.

The proof-of-stake algorithm allows the confirmation of blocks to be more energy-efficient and requires validators to stake Ether instead of solving a cryptographic puzzle. As a result, it is touted to be more environmentally friendly and cost-effective. ETH 2.0 is also expected to improve scalability through sharding.

Meanwhile, ETH mining difficulty recently reached record highs.

The Ethereum mining difficulty measures how many hashes in statistical terms must be generated to find an effective solution to solve the next ETH block and earn the mining reward.

With this metric reaching record highs, the Ethereum supply is expected to continue being depleted because it is becoming harder to generate more coins. 

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Bitcoin (BTC) $ 43,898.76 0.54%
Ethereum (ETH) $ 2,367.92 3.78%
Litecoin (LTC) $ 76.39 4.41%
Bitcoin Cash (BCH) $ 249.19 1.66%