Bitcoin whales are moving the vastly used treasury crypto in large amounts amid price volatility and bullish rush, as Bitcoin bulls regain control above the $60, 000 mark.
Data retrieved from BtcBlockBot an advanced crypto blockchain tracking and analytics firm, an anonymous cryptocurrency user revealed someone (possibly http://coinbase.com) moved 11,901 BTC $714 million in block 678,688.
Whale alert! 🐋 Someone (possibly http://coinbase.com) moved 11,901 BTC $714 million in block 678,688
— Bitcoin Block Bot (@BtcBlockBot) April 11, 2021
The tracker further disclosed that the whale may have come from the world’s pioneer crypto exchange, Coinbase.
Nairametrics’ research has recently seen the surge in unknown crypto transactions involving Bitcoin, Ethereum, and other top crypto assets at levels not previously seen in the cryptoverse suggesting that more institutional players are getting into the game.
At the time of writing, the flagship crypto traded at $60,514.60 on the FTX exchange with a daily trading volume of $45.5 billion. Bitcoin is down 0.04% for the day.
During bull trends in the cryptoverse, these large entities can take profit on their positions, especially if the futures market is overcrowded.
Wealthy investors reducing their crypto exposure to rebalance their portfolios can cause high price swings in the market, especially when accompanied by cascading liquidations.
However, recent data suggests otherwise as data retrieved from Glassnode points at entities holding more onto the world’s most popular crypto, rather than selling; as data shows Bitcoin balance on Crypto Exchanges just reached a 2-year low of 2,337,271.262 BTC.
A previous 2-year low of 2,338,724.621 BTC was observed on 08 April 2021.
Previous 2-year low of 2,338,724.621 BTC was observed on 08 April 2021
— glassnode alerts (@glassnodealerts) April 11, 2021
Altcoin season? Ether, ADA, Doge and others hit all-time highs
The cryptocurrency market is said to be in “Altseason” as the majority of the altcoins in the top 100 on CoinMarketCap.com rallied yesterday.
The cryptocurrency market is said to be in “Altseason” as the majority of the altcoins in the top 100 on CoinMarketCap.com rallied yesterday. Ether, ADA, Doge, and Ethereum Classic hit new all-time highs.
Several large-cap tokens reached multi-year highs but Bitcoin’s price struggles to hold any of the news-driven gains that it has accrued throughout the week. The recent pump in altcoins has led to the decline in the market dominance of Bitcoin over the past few weeks. According to analysts, this is another indication that the Altcoin season is here.
The market dominance of Bitcoin has dropped to 45.31% from the previous peak of 72.48% (as of January 2021) representing a 37.48% decline in market dominance. This means that the altcoin correlation with Bitcoin is relatively low and bitcoin is no longer a “drag” on other altcoins as bitcoin trades $56,500 (down by 12.84% from its all-time high) as at the time of writing this report.
What is causing the rally?
For Ethereum, over the past few months, high gas fees (transaction charges of the crypto world) have plagued the Ethereum network as a result of the volume of transactions executed on the network which is majorly driven by DeFi (decentralized finance) platforms such as Uniswap (UNI Token). This has caused investors to switch to other networks such as the Binance smart chain network which has cheaper gas fees. Ethereum just announced that its London hard fork network will be upgraded with the implementation of “EIP-1559.” This upgrade is expected for July 2021 and the network claims it will help to significantly reduce the gas fees.
ADA is going into the smart contract space with its “Alonzo Testnet” scheduled for lunch in May 2021. The recent rally in ADA should come as no surprise, as the popular saying in the crypto world goes, “Buy the testnet and sell the mainnet launch.”
Dogecoin, which started as a meme, created an all-time high following its listing on eToro and Gemini exchanges. The listing should come as no surprise because of the calibre of individuals that are pushing for the adoption of the coin – Mark Cuban, Elon Musk, Snoop Dogg just to mention a few names.
Ethereum Classic, popularly known as the “first Ethereum” has gained about 295% to create a new all-time high. Despite the security issues of the cryptocurrency, the coin has surged to new levels without any changes.
Other altcoins like Litecoin, EOS, Vechain, Steller have also surged significantly with gains of 20% or higher.
Crypto aftershocks send Doge crashing by 10%
The fast-rising crypto was trading at below 60 cent posting losses of about 10% for the day on the FTX exchange.
The Crypto market is currently undergoing some form of price correction amid intensified profit-taking and fear of regulatory oversights, thereby pushing Dogecoin below the 60-cent price levels.
On the broader crypto market, for the day, about 171,444 traders were liquidated. The largest single liquidation order happened on Bybit-ETH valued at $5.98 million.
The fast-rising crypto was trading at below 60 cent posting losses of about 10% for the day on the FTX exchange, after trading near 70 cents some hours ago.
Consequently, market pundits argue that the crypto asset doesn’t have any real case use.
“I worry that, once the enthusiasm rolls out, there are no developers on it, there are no institutions coming in. But it’s got this moniker of the people’s coin right now,” Galaxy Digital’s Michael Novogratz said on Squawk Box.
Dark clouds seem to be building upon recent reports that the Crypto market is about to face a wave of regulatory oversights when Janet Yellen the custodian of the world’s most powerful economy stated that the United States is yet to have the needed framework to deal with a host of money laundering, terrorist financing, and consumer risk protection that crypto raises.
Also, the U.S. Securities and Exchange Commission Chair, Gary Gensler advised U.S lawmakers on providing more regulatory oversight to the cryptoverse.
“Right now, the exchanges, trading in these crypto assets, do not have a regulatory framework either at the SEC or our sister agency, the Commodity Futures Trading Commission,” said Gensler, who further added, “there’s not a market regulator around these crypto exchanges, and thus, there’s really no protection against fraud or manipulation.”
That being said, the crypto’s stellar performance over the past few months can’t be ignored as Dogecoin maximalists try to convince the world that crypto is a serious asset class with powerful billionaires like Elon Musk and Mark Cuban giving the Crypto asset endless support.
Crypto experts further anticipate that ongoing institutional interest will make it difficult to predict if the Doge bubble is ripe as they try to take advantage of its incredible bullish momentum, which could in turn, push the crypto value higher.
Nairametrics | Company Earnings
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- 2021 Q1 Results: FTN Cocoa Processor Plc reports loss after tax of N162.21 million
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- 2020 FY Results: UPDC Real Estate Investment Trust records over 500% growth in Profit after tax.
- Sovereign Trust Insurance records a 43% surge in profit after tax to N392.1 million in Q1 2021.