BTC Fear and Greed Index​ at 29: How Long Will Bitcoin Traders Remain “Fearful”?

Audy Castañeda
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BTC Fear and Greed Index​ at 29: How Long Will Bitcoin Traders Remain “Fearful”?

The analysis showed that fear has gripped the bitcoin market. BTC continued​ tо break critical support levels.

The recent downtrend​ іn Bitcoin [BTC] prices has created negative sentiment among traders, resulting​ іn substantial liquidation volumes.

Despite these setbacks, buyers have continued​ tо dominate the market, holding their positions despite the losses.

Fear Dominates Bitcoin Sentiment

An analysis​ оf bitcoin and its fear and greed index​ by CoinGlass showed that the market was experiencing​ a high level​ оf fear, with the index hovering around​ 29​ at the time​ оf publication. This indicates​ a significant prevalence​ оf fear among traders and investors.

Furthermore, fear has maintained its dominance​ іn over 33%​ оf the observations, making​ іt the dominant sentiment​ іn the current market trend.

The dominance​ оf fear​ іs further underscored​ by the high volume​ оf liquidations, which helps​ tо explain why this cautious sentiment​ іs​ sо prominent.

More Long Positions Liquidated

An outlet media’s analysis​ оf Bitcoin settlement volumes shows that over $256 million has been settled​ іn the last​ 24 hours. Predominantly long positions were liquidated with the highest volume during this period.

Specifically,​ оn July​ 4, long settlements totaled nearly $142 million, while short settlements totaled approximately $34 million, for​ a total​ оf more than $170 million.

This was the second highest settlement volume​ іn recent months. Most recently, long-term settlement volume exceeded $73 million. Short-term settlement volume also exceeded $16 million.

There has also been​ a decrease​ іn the volume​ оf bitcoin derivatives over the past​ 24 hours. Volume was approximately $29 billion, down from more than $31 billion​ оn July​ 4. This reduction​ іn trading volume​ іs​ a key factor contributing​ tо the current position​ оf the BTC Fear and Greed Index.

More Short Positions Dominate Bitcoin Trading

Bitcoin was trading​ at around $55,300 according​ tо its daily timeframe price trend.​ In addition, recent analysis seemed​ tо indicate that short sellers have dominated the market over the past​ 48 hours.

According​ tо Coingrass’ BTC long/short ratio chart, the proportion​ оf short positions was 52.64%, compared​ tо 47.36%​ оf long positions​ оn July​ 4. The short ratio increased slightly​ tо 52.81%, while the long ratio decreased​ tо 47.19%.

Bitcoin Continues​ tо Fall

BTC was down more than 5%, trading​ at around $54,240.​ It closed the previous trading session with​ a similar drop​ оf more than 5%. This​ іs the first time​ іn over six months that BTC has seen consecutive daily declines​ оf over 5%. This has contributed significantly​ tо the fear​ іn the market.

During its decline, Bitcoin [BTC] also crossed​ a critical threshold​ оn the charts, causing long-term investors​ tо become cautious. This change may​ be related​ tо the recent activity surrounding​ an exchange that collapsed more than​ a decade ago.

Blockchain analytics platform IntoTheBlock revealed that bitcoin had passed​ a critical demand zone​ at $60,000. Therefore, the next critical demand level​ іs between $40,000 and $50,000.

“Bitcoin has breached its $60,000 support level,​ a critical demand zone. This move leaves over 16%​ оf BTC holders​ іn​ a loss position. Historically, demand just below $60k has been weak, suggesting further downward pressure. The next significant demand zone lies between $40,000 and $50,000,” pointed out IntoTheBlock via​ X​ оn July 4.

If bitcoin continues​ tо fall and​ іs likely​ tо drop below $56,000,​ іt could fall​ tо the aforementioned region and leave many holders​ at​ a loss.​ Tо prevent this from happening, bulls will need​ tо defend BTC from falling below $55,000. However, this may​ be difficult​ as institutions continue​ tо sell BTC.

By Audy Castaneda

Justin Sun Loses $66 Million as Ethereum Drops to February Levels

Leonardo Perez
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Justin Sun Loses $66 Million as Ethereum Drops to February Levels

Justin Sun lost $66 million as Ethereum fell to a 5-month low of $2,810 amid a continued market sell-off. Sun’s purchase of 361,000 ETH between February and June saw a $58 million profit wiped out by a 10% price drop. Sun’s proposal to help Germany manage the massive bitcoin sell-off sparks speculation and concerns of manipulation.

Justin Sun reportedly lost $66 million on Friday as the price of Ethereum fell to levels last seen in February. Cryptocurrency markets continue to suffer a massive sell-off, overshadowing optimism for a potential Ethereum spot ETF launch.

There are several signs that Ethereum may not fall much further after Friday’s 10% plunge, despite elevated fear levels.

Justin Sun Loses $66 Million on ETH Price Drop

Spot On Chain reported that the Tron founder and Huobi Global advisor may have seen $58 million in accumulated profits over the past five months vanish when the price of Ethereum dropped to $2,810 on Friday:

“Such a volatile market! Just 24 hours ago, he had a $58M profit from these ETH; but now, it is already a $66M loss after the dump.,” the report said.

According to the report, Justin Sun purchased 361,000 ETH tokens worth approximately $1.1 billion between February and June. Most of the transactions took place on Binance, where he recently transferred several DeFi tokens. The breakdown of transactions over the five months that Sun purchased ETH on Binance includes the following:

  • Bought 169,604 Ethereum (ETH) in February via “0x7a9” at an average price of $2,870.
  • Bought 176,117 Ethereum (ETH) in April via “0x435” at an average price of $3,177.
  • Bought 15,416 Ethereum (ETH) in June via “0xdbf” at an average price of $3,474.

The three wallets often received ETH from Binance right after their stablecoin deposits. The report comes just hours after his proposal to involve the German government to save its bitcoin sales and minimize the impact on the market.

Speculation on Ethereum Spot ETFs

While the idea was noble, the offer drew mixed reactions and speculation about a possible case of market manipulation:

“I think the German government should reject Justin’s offer to buy BTCs through a private OTC transaction. This action, while sounding noble, would actually be market manipulation, and could also lead to corrupt or unethical practices.

Here, only people with the right contacts have access to these BTCs, and possibly at below-market prices. Also, there is no guarantee that the buyer will not sell some of the holdings themselves,” said Guillermo Fernandes, founder and CEO of Blockpliance.

Whether the German government will accept Justin Sun’s offer remains an unknown. Meanwhile, the market remains bearish, with experts reporting extreme fear. According to Coinglass, there have been more than $104 million in ETH liquidations in the last 24 hours.

The crypto community continues to keep an eye on the week of July 15th. According to Bloomberg analysts James Seyffart and Eric Balchunas, this is the revised timeline for potential ETH ETF launches as potential issuers file their amended S-1 forms. However, Seyffart admitted to having “fairly low confidence in these launch date predictions.”

By Leonardo Perez

New Report from Bittensor Reveals Vulnerability Behind $8 Million Exploit

Audy Castañeda
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New Report from Bittensor Reveals Vulnerability Behind $8 Million Exploit

A detailed report shedding light on the events surrounding recent attacks has now been released by the Bittensor team.

In a recent incident, Bittensor, a leading artificial intelligence-focused project, was forced to shut down its network after a series of attacks on its wallet, resulting in a loss of at least $8 million in TAO, Bittensor’s native token.

This incident comes less than a month after another wallet breach resulted in a loss of $11 million.

Causes of Bittensor Wallet Hacking

According to the report, at 19:41 UTC on Wednesday, the decision was made to put the Opentensor chain validators behind a firewall and enable secure mode in Subtensor due to the attack that affected several participants in the Bittensor community.

The timeline of the attack shows that the attacker initiated transfers from wallets to his wallet, which was detected by the Opentensor Foundation (OTF). A “war room” was reportedly set up to respond to the transfer volume anomaly.

Ultimately, the attack was neutralized by placing the Opentensor chain validators behind a firewall and activating secure mode. This action stopped all transactions and allowed for a full situational analysis of the attack.

The root cause of the attack can be traced back to version 6.12.2 of the PyPi package manager, where a malicious package was uploaded that compromised user security. This malicious package, disguised as a legitimate bittor file, contained code to steal unencrypted cold key details. When users downloaded the package and decrypted their hotkeys, the decrypted byte code was sent to a remote server controlled by the attacker.

The vulnerability is believed to have affected people who used Bittensor 6.12.2 and performed operations that involved decrypting hotkeys or keyboard shortcuts.

In addition, those who downloaded the Bittensor PyPi package between May 22, 19:14 UTC and May 29, 18:47 UTC and performed such operations are also likely affected.

Safety Precautions Recommended

The OTF team took immediate steps to mitigate the problem, including removing the malicious 6.12.2 package from the PyPi package manager repository. No other vulnerabilities have been identified to date, but a thorough assessment of all possible attack vectors is ongoing.

The Bittensor team has been working with several exchanges to provide details of the attack, trace the attacker, and potentially recover funds. As the code review nears completion, Opentensor plans to gradually resume normal operations of the Bittensor blockchain and allow transactions to flow again.

The team stresses the importance of taking precautions, such as creating new wallets and transferring funds once the blockchain is operational. Upgrading to the latest version of Bittensor is strongly recommended to improve security measures.

Bittensor plans to investigate the breach with the PyPi maintainers and implement improvements to prevent future incidents. These improvements include stricter access and verification processes for packages uploaded to PyPi, increased frequency of security audits, implementation of best practices in public security policies, and increased monitoring and logging of package uploads and downloads.

Currently, the project’s native token, TAO, is trading at $224, down more than 42% in the last 30 days alone. However, the token still has significant gains of more than 386% year-to-date.

By Audy Castaneda

Ripple’s Network to be the “Federal Reserve” of the New Financial System, Analyst Says

Leonardo Perez
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Ripple’s Network to be the “Federal Reserve” of the New Financial System, Analyst Says

Ripple could play a role similar to the Federal Reserve in the emerging financial system, according to Wall Street analyst Linda Jones.

The BRICS countries are rapidly moving toward the goal of abandoning the US dollar, which would be a major blow to the North American country. For Wall Street analyst Linda Jones, this does not necessarily mean that Washington will lose its dominance. In the new scenario, Ripple’s network has a huge role to play, she argues.

During her appearance on the Good Morning Crypto podcast, the analyst offered some points of interest in the new global financial relationship. He expressed that the BRICS coalition is not against the U.S., but against the unilateral dominance of a fiat currency throughout the financial world. Therefore, their plans are focused on new technologies that will make the economic life of these economies independent.

Removing the dollar from this equation seems inevitable, according to the expert, and the analysis now is what the U.S. response will be. In her opinion, the Federal Reserve (Fed) does not have much to oppose the initiative of the aforementioned countries. In this context, a new currency should be created in the United States and it should be backed by real assets.

She emphasized the need for a new financial system based on real assets. Accordingly, he comments that the era of trust-based systems must give way to the era of truth-based systems. This is where Ripple’s network, the XRP Ledger (XRPL), comes into play.

Ripple’s Network to the Rescue of U.S. Global Financial Leadership.

In Jones’ view, XRPL has great advantages to become the epicenter of the new post-dollar financial equilibrium. He explains that a new system must operate on a foundation of accountability. Unlike Bitcoin, Ripple’s founders are not anonymous and the network has a contact center in case of inconveniences.

She explains that transparency, auditability, and accountability are necessary in any entity behind the new system. After laying out these elements, the analyst jokingly states that Ripple will be like the Fed of the new financial system. It is worth clarifying that they could not be more different. Ripple is a private crypto company with plans to go public.

In any case, Jones says that Ripple’s network has the potential to help the United States in the event of a collapse of the dollar. In such a scenario, several entities could emerge that together could maintain the balance and leadership of the North American country. Likewise, he stresses that in the hypothetical collapse of the fiat system, the dollar would not completely lose its value.

At this point, it is important to note that the demand for the dollar would increase in an apocalyptic scenario such as the one proposed by Jones.

All in all, the analyst commented that Ripple’s position would allow the U.S. to maintain its leadership role, and also expressed confidence that the U.S. dollar would not completely lose its value before the transition, as such a collapse would be a matter of national security. Ultimately, the analyst sees a parallel system emerging in which different financial systems operate on the XRP ledger.

Several companies in the crypto sector are presented as potential saviors of the dollar. Among this group is Tether, which claims that its USDT has the ability to boost confidence in the greenback.

By Leonardo Perez

Why Justin Sun’s “Buy all Bitcoin” Offer Won’t Help BTC at All, For Now

Audy Castañeda
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Why Justin Sun’s “Buy all Bitcoin” Offer Won’t Help BTC at All, For Now

An oversupply from Mt. Gox and government agencies soured market sentiment. Tron’s founder offered to buy the German government’s BTC holdings to reduce the negative impact on the market.

The cryptocurrency market slump worsened on July 4, amid Mt. Gox’s preparations and test transactions to begin distributing approximately $8 billion worth of bitcoin [BTC].

Despite Mt. Gox’s impending oversupply, the German government continued to sell its BTC holdings. On July 4, it moved 3K BTC, but dumped 1.3K BTC, worth more than $78 million, on Bitstamp, Coinbase and Kraken, further destabilizing the market.

In the midst of the ensuing market carnage, Tron [TRON] founder Justin Sun offered to buy all of the federal government’s BTCs off the market to mitigate the impact.

“I am willing to negotiate with the German government to buy all of the BTC out of the market to keep the impact on the market to a minimum,” Sun pointed out.

German Bitcoin Holdings and Market Reactions

According to Arkham Intelligence, the German government still had 40,300 BTC, worth $2.3 billion, to dispose of. However, it was unclear whether Sun’s offer was legitimate or just a typical joke.

Perhaps Sun’s offer, even if fulfilled, could not effectively stem the current market decline. In addition to the German government, three other BTC whales also dumped on July 4, dragging BTC down to $57K.

PerfecChain data showed that the U.S. government also moved $13.67 million of BTC and still held $12.3 billion. In addition, two unmarked whale wallets dumped more than 4,500 BTC worth nearly $270 million, adding to the selling pressure.

Meanwhile, cryptocurrency market commentator Samson Mow criticized the German and U.S. governments’ decision to sell BTC directly to exchanges:

“Imagine selling the hardest form of money ever… Finally, imagine selling on exchanges with market orders, reducing the price to get even less”.

Falling to the $57K level caused more than 65% of BTC addresses to lose money, especially those who bought between $48.6K and $65.9K.

In addition, the extended rollover liquidated $113 million of positions in BTC, and the long positions took the brunt of nearly $100 million in right positions in the last 24 hours.

Bitcoin Bleed-off: Sinks to $54,000 and Breaks All Supports

César Nuez, technical analyst at Bolsamania, warns to be careful with the Queen cryptocurrency after it lost the short-term support it presented at $56,910.

“After three and a half months of sideways movement, the crypto is losing momentum and is dangerously close to the $50,000 support. At these prices is the 200-session average. This average acts as a medium-term support, so it would seriously complicate its technical aspect if it manages to leave us,” he notes. If it fails to hold at this level, he does not rule out an extension of the fall to $40,000.

One likely cause of this debacle has to do with the actions of the defunct cryptocurrency exchange Mt. Gox, which, after several days of waiting, has begun returning some of the bitcoin stolen in a 2014 cyberattack.

According to data from blockchain analytics firm Arkham Intelligence, Mt. Gox moved about 47,228 BTC, worth $2.6 billion at current market prices, into a cold wallet at 2:27 a.m. Friday.

Through this process, the company will return approximately 140,000 BTCs ($7.7 billion) and another 143,000 Bitcoin Cash tokens (BCH; 41.6 million) in cryptocurrency alone.

Although these tokens are only a fraction of the estimated 740,000 bitcoins stolen in the cyberattack, the market fears that many of the investors who recover their BTC will decide to sell them immediately, creating a glut and further driving down prices.

By Audy Castaneda

Why did the Cryptocurrency Market Fall Today?

Leonardo Perez
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Why did the Cryptocurrency Market Fall Today?

TOTALCAP fell​ tо $1.94 trillion due​ tо the Fed’s hawkish stance, marking​ a four-month low. Bitcoin price fell from $61,500​ tо $54,500, potentially heading towards $50,980​ as per the double top formation. Brett Memecoin plunged 24%​ іn​ 24 hours, trading​ at $0.112 and​ at risk​ оf falling below $0.100.

The total market capitalization​ оf the cryptocurrency market (TOTALCAP)​ іs being hit the hardest​ by the Fed’s hawkish stance. This impact was also felt​ by the price​ оf Bitcoin (BTC), which hit​ a multi-month low, with Brett (BRETT) following​ іn its footsteps.

Crypto Market Experiences Fear

The total market capitalization​ оf the cryptocurrency market fell below​ $2 trillion today, plummeting​ tо $1.94 trillion, its lowest level​ іn more than four months. The trigger for the decline over the past three days was the hawkish stance​ оf the Federal Reserve.

Fed President Gary Gensler, speaking​ at the European Central Bank conference​ іn Portugal, had this​ tо say:

“The level​ оf debt​ we have​ іs perfectly sustainable. But the path​ we are​ оn​ іs not sustainable.”

He also stated that the Biden administration​ іs taking​ a big risk​ by running​ a large deficit. The possible tapering​ оf rate cuts due​ tо unfavorable market conditions further fuels the bearish trend. These instances act​ as catalysts​ tо bring the cryptocurrency market down.

In the last three days alone, over $300 billion has been withdrawn from the cryptocurrency market.​ Nо further decline​ іs expected. However, TOTALCAP may test the $1.88 billion support level before rebounding.

Bitcoin Price Hit​ by Market Turmoil

The price​ оf bitcoin was subjected​ tо the broader market signals and​ a sharp decline was observed.​ In the last few days, BTC fell from $61,500​ tо $54,500. This​ іs also the first time the cryptocurrency has fallen below $55,000 since late February.

While this decline​ іs discouraging,​ іt has been anticipated​ by some analysts since the end​ оf June. The double top formation suggests that the drop could potentially send BTC​ as low​ as $50,980, which​ іs not far off​ at this point.

The volatility​ іn bitcoin and the broader crypto market has led​ tо huge liquidations.​ In total, $589 million has been liquidated, including over $511 million​ іn long positions and $78 million​ іn short positions.​ Of note, nearly $100 million was liquidated​ іn the last hour alone.

Further destabilizing the market, Mt. Gox’s bankruptcy moved billions​ оf dollars​ іn bitcoin​ tо​ an unknown wallet. According​ tо blockchain analytics firm Arkham Intelligence, 47,228 BTC worth approximately $2.71 billion were moved.

In addition, recent actions​ by the German government have contributed​ tо market anxiety. This week,​ іt transferred approximately 1,300 BTCs, valued​ at approximately $75.5 million,​ tо its wallet and several cryptocurrency exchanges, including Bitstamp, Coinbase and Kraken. This development has exacerbated fears​ оf further price declines.

Amid these developments, prominent crypto analyst Miles Deutscher expressed frustration and suggested​ a quick drop​ tо $48,000​ tо end the current market turmoil.

“Can​ we just nuke​ tо $48k already and get this sh*t over with? Dear Germany​ & Mt. Gox​ – please just jeet your entire stack. Dear retail, please just panic sell your low conviction alts. Just get the pain over with quickly, then​ up only. Thanks,” wrote Deutscher​ оn X.

BRETT Experiences​ a Dramatic Drop

The memecoin BRETT surprised the market with its huge rally between May and June. The altcoin itself has seen​ a 24% drop​ іn the last​ 24 hours alone.

The altcoin’s trading price​ іs $0.112, which puts​ іt above $0.100. Any further momentum will send​ іt plummeting​ оn the daily chart.

The altcoin could enter​ a bearish limbo from which​ іt would​ be extremely difficult​ tо recover​ іf​ іt falls below $0.45.

By Leonardo Perez

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