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Dogecoin Wallet Frenzy : 414K New Users Defy Dip

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Dogecoin, the OG memecoin’s network, is defying market odds and blazing its trail to unprecedented heights. Despite a recent 23% dip in value since December 9th, DOGE’s non-zero wallets are booming, marking the fastest growth in the coin’s decade-long history. Santiment’s analytics reveal a jaw-dropping addition of approximately 414,000 new wallets, mostly holding 0.001-1 DOGE, in just two weeks, culminating in a 7.2% surge since January 22nd.

But that’s not all. Dogecoin is experiencing an adoption explosion, with over 890,000 new DOGE addresses sprouting up in the past seven days. The adoption rate has skyrocketed to a mind-boggling 86% as freshly initiated users eagerly plunge into their first transactions, as reported by analysts at IntoTheBlock. The catalyst behind this surge is credited to the revived interest in Doginals, fueled by the release of Doom on the Dogecoin chain and the buzz surrounding Xpayments, luring new enthusiasts into the DOGE community.

As if that’s not enough to fuel the DOGE frenzy, SpaceX has thrown its weight behind the meme coin by endorsing it as payment for the rescheduled DOGE-1 Mission to the Moon. Geometric Energy Corporation [GEC] CEO Samuel Reid spilled the cosmic beans, revealing that GEC paid SpaceX in DOGE to secure a new launch date following the mission’s delay.

Dogecoin’s Market Cap Battle With LINK

Initially set for liftoff in 2022 on the SpaceX Falcon 9 rocket, the DOGE-1 mission hit a snag due to the satellite’s unpreparedness for the Intuitive Machines IM-1 launch. Despite the setback, Reid assured the DOGE community that the revised deal includes a rebooking fee paid in Dogecoin, and the DOGE-1 satellite is now on standby for a mission, potentially after IM-1. The timing hinges on the satellite’s journey from Exobotics in the UK to Maverick Space in the U.S.

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Dogecoin Wallet Frenzy : 414K New Users Defy Dip 2

Adding to the intrigue, DOGE finds itself entangled in a market cap showdown with Chainlink’s LINK token, which has recently outshone the broader market downturn. LINK briefly stole the limelight, dethroning DOGE, but the meme coin swiftly reclaimed its top-10 status. The battle rages on, keeping the community on the edge, even though the gap between the two assets remains tantalizingly narrow.


Bitcoin’s 487K Wallets Gone: Bulls On The Edge

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Bitcoin’s recent stabilization comes amidst a notable decline in the total number of BTC wallets, marking the swiftest reduction since early October, just before the initiation of the major crypto bull cycle. The current market sentiment reflects a level of impatience, evident in the liquidation of over 487,000 wallets holding 1BTC or less within the past four days.

Historical trends suggest that such a reduction in wallets is often indicative of capitulation, a phase that could precede a market price rebound as smaller traders regain optimism about crypto as a viable investment. According to market observers, the disappointment stemming from the market’s performance since the approval of 11 ETFs over two weeks ago is widely attributed to the cause of these wallet liquidations.

Despite Bitcoin managing to surpass the $40,000 threshold, the flagship crypto is currently encountering resistance in breaking through the $40,300 level. A market analyst notes that rising open interest [OI] suggests an impending move, expressing expectations of a retest of the mid-range if bulls manage to reclaim or a retest of the highs if the opposite scenario unfolds.

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Source: @TraderFlameseN

Simultaneously, the United States government has filed a notice to sell over $130 million worth of bitcoin associated with the Silk Road seizures. The public notification outlines two lots of bitcoin slated for sale. The larger lot comprises approximately 2,800 BTC, valued at around $129 million, while the smaller lot consists of 58 BTC, estimated at $3 million.

DOJ Plans To Dump $130M Bitcoin

These bitcoins are linked to Ryan Farace, who was sentenced in Maryland last year to 54 months in prison for a money laundering conspiracy. The court found Ryan and his father, Joseph, guilty of laundering more than 2,874 Bitcoin initially used for drug trafficking and intended to be forfeited to the U.S. Both individuals had plans to move the funds into a foreign bank account.

The Department of Justice’s press release highlighted the Faraces’ involvement in a scheme to manufacture and distribute Xanax in exchange for Bitcoin through sales on darknet marketplaces.

According to their guilty pleas and other court documents, in November 2018, Ryan Farace was convicted in a U.S. District Court in Maryland for a scheme to manufacture and distribute [Xanax] in exchange for Bitcoin through sales on darknet marketplaces.

Crypto Market Faces Concerning Declines As Bitcoin ETF Hype Triggers Sell-Offs

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The past week has seen a concerning decline, with the total crypto market cap dropping by 7.5%. The highly anticipated approval of 11 initial Spot Bitcoin ETFs by the SEC on January 10th has failed to sustain the bullish momentum that propelled the market in the final months of 2023.

Santiment, a leading crypto analytics platform, suggests that the recent downturn might be indicative of a classic ‘buy the rumor, sell the news’ scenario regarding Bitcoin ETF approvals. While the market has reacted negatively in the short term, it is still early to predict the long-term ramifications.

Analysts point out that the optimism surrounding the approval of these ETFs has somewhat waned. Traders, who initially welcomed the regulatory green light, are now facing the harsh reality of market dynamics. The approval, once seen as a catalyst for sustained growth, may have contributed to what some experts are calling a local crypto top.

Bitcoin, the bellwether of the cryptocurrency market, experienced a significant drop to $40.6K on Thursday, representing a 16.9% decline from its peak market value the previous week. This sharp correction has raised questions about the narrative surrounding the ETF approvals.

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CoinMarketcap

Shifting Crypto Sentiment 

In a separate X post, Santiment highlighted the ongoing optimism among traders about the long-term implications of the SEC’s decision. However, there is a growing consensus that the so-called “FOMO” (Fear of Missing Out) surrounding the approvals may have inadvertently marked the peak of the market, as many believed that the approval was already priced into the market when the announcements were made.

The current concern is that if the narrative shifts from optimism to skepticism, terms like ‘scam,’ ‘ripoff,’ and ‘disaster’ could become associated with the approved ETFs. This shift in sentiment could trigger a new wave of fear, uncertainty, and doubt (FUD) among traders, leading to further selloffs, especially among novice investors who entered the market during the hype.

Despite the downturn, seasoned analysts suggest that patient opportunists may find opportunities for accumulation during these lower price levels. The market rebound, they argue, could come from those who remain focused on the fundamentals and view the current situation as a temporary setback rather than a long-term crisis. Nevertheless, all eyes will be on how the narrative evolves surrounding the recently approved Bitcoin ETFs and whether the market can find stability amid the ongoing fluctuations.

Related Reading | Shiba Inu Soars to Headlines with Exclusive Coverage on New SHIB ETF

Bitcoin Volume Hit New Highs Amidst $42K Dip

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Bitcoin, along with the broader crypto markets, has encountered its initial downturn in 2024. Amidst the frenzy surrounding ETFs, BTC experienced a decline to $42.2K, eliciting diverse reactions among traders. Nevertheless, amidst this volatility, a positive outcome emerges, as this dip has propelled Bitcoin to its highest trading volume level since March 17th. There’s an anticipation that daily trading could surpass year-high levels in the next few hours.

Data analytics platform Santiment reported that BTC’s initial sell-off triggered a mix of panic sales and dip buys on exchanges, leading to a surge in BTC volume. A closer analysis reveals that traders engaged in leveraging, resulting in the liquidation of margin longs and restoring the funding rate to normal levels. Despite this, Santiment suggests that the funding rate still reflects a prevailing sense of fear among investors.

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Bitcoin Volume Hit New Highs Amidst $42K Dip 6

The approximately 8% dip in BTC is attributed to market concerns revolving around the approval of spot ETF applications. This uncertainty led to the liquidation of positions valued at $500 million across derivatives exchanges. With the arrival of 2024, a year highly anticipated for ETF approvals, Matrixport, a crypto financial services platform, garnered attention with intense debates and controversial reports.

Matrixport expressed skepticism, stating, “We believe all applications fall short of a critical requirement that must be met before the SEC approves. This might be fulfilled by Q2 2024, but we expect the SEC to reject all proposals in January.” While some critics argue that the Matrixport research report fueled fear, others attribute the market correction to the flushing out of leverage due to excessively high BTC funding rates.

Goldman Sachs Enters Bitcoin ETF Space

Amidst the debates, U.S. lawyer and Bitcoin advocate Carlasare downplayed the report, emphasizing that BTC’s sell-off was not triggered by a report on ETF denial but rather due to a natural market correction and the need for liquidity.

In a noteworthy development, Goldman Sachs is reportedly in discussions to become an authorized participant [AP] for proposed Bitcoin ETFs by BlackRock and Grayscale, contingent upon SEC approval. This marks a significant shift as major U.S. banks, traditionally cautious about direct involvement in cryptocurrencies, are now exploring the Bitcoin ETF space. The move is seen as a strategic adoption of a cash-based mechanism, deemed crucial for gaining SEC endorsement. While Goldman Sachs has yet to officially comment on this development, its potential involvement signals a growing mainstream financial interest in crypto ETFs.

Bitcoin: Buy the Dip or Bear Market? Tug of War Intensifies

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The crypto market has undergone a substantial retracement, with Bitcoin’s price witnessing a nearly 10% decline since its peak on December 8th. This downturn has sent shockwaves across the crypto space, affecting lower-cap altcoins even more significantly. Bitcoin, the leading cryptocurrency, recorded a notable drop, prompting a reassessment of the recent bullish sentiment.

Bitcoin
Bitcoin: Buy the Dip or Bear Market? Tug of War Intensifies 8

The retracement is not limited to Bitcoin alone, as lower-cap altcoins are reporting particularly steep falls. Investors in these alternative cryptocurrencies are witnessing substantial losses, prompting some to reevaluate their positions in the market.

As the market grapples with the recent downturn, there is a notable split in sentiment. On one hand, advocates of the “buy the dip” strategy are encouraging investors to take advantage of the lower prices, seeing it as an opportunity for strategic entry or accumulation of assets.

On the other hand, a growing number of speculators are expressing concerns about the possibility of a looming bear market. The recent retracement has fueled discussions about the sustainability of the bullish trend that has dominated the crypto space in recent months.

Bitcoin: Inflation Indicators This Week

Industry experts and analysts are divided on the root causes of the retracement and its potential long-term effects. Some attribute the decline to profit-taking after the recent price surge, while others point to external factors such as regulatory developments and global economic uncertainties. Despite the market drop, some individuals continue to assert a bullish outlook on BTC. A trader remarked,

Bitcoin has been on a prolonged bull market cycle since 2019. The pattern of Bull market cycle is identified in BTC, and it is now in the stage of “Renewed Optimism”, the first stage of the Blow-off phase. The next stage is “FOMO” when it reaches over $100,000. In the “Euphoria” stage, BTC could reach over $400,000. We are still early We are still in the early stages.

The market is eagerly awaiting the release of the November Consumer Price Index [CPI] inflation data scheduled for December 12. Simultaneously, the Federal Open Market Committee [FOMC] is slated to convene on December 12 and 13. These two events hold significance for Bitcoin’s price. The CPI inflation data typically influences the FOMC’s decision on whether to adjust interest rates in its efforts to combat inflation. A dovish stance, viewed as positive for markets, including Bitcoin, contrasts with a hawkish one, which tends to have a negative impact.

Bitcoin Traders On Edge After “Bull Trap” Rumours

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Bitcoin traders are currently grappling with concerns that the cryptocurrency markets might be ensnared in a bull trap. Santiment, a prominent market analyst, conveyed through X [formerly Twitter] that the flagship crypto has stabilized after assertions of a “bull trap.” A bull trap denotes a deceptive signal within a declining trend in a financial asset, such as a stock or index. This misleading signal occurs after a convincing rally that appears to be a trend reversal, subsequently breaking a prior support level. Traders and investors acting on the buy signal often find themselves “trapped,” incurring losses on their long positions.

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Bitcoin Traders On Edge After "Bull Trap" Rumours 10

While some enthusiasts anticipate the commencement of an exuberant bull run, skepticism looms among others, suggesting that Bitcoin might be entangled in a substantial bull trap. According to this narrative, the crypto could retreat to $30,000 before reaching its all-time high [ATH] in late 2024. The increasing doubt in the market dynamics may contribute to Bitcoin’s upward movement toward $50,000, creating pressure on short positions betting on lower prices.

User reactions to this analysis varied, with some expressing interest and adopting a wait-and-see approach, emphasizing the unpredictable nature of the crypto market. One user likened the market to a thrilling plot twist, highlighting the never-ending uncertainty that characterizes cryptocurrency trading.

Bitcoin Rally Halts, Altcoins Surge

Bitcoin experienced a dip to $43,000 during the day, following its rapid ascent to nearly $45,000 earlier in the week. This downturn suggested that traders capitalized on profits after Bitcoin’s breakout from the $38,000 mark just a week ago. Presently, Bitcoin is trading at approximately $43,496, reflecting a 1.1% decrease over the past 24 hours.

While Bitcoin faced a temporary pause in its momentum, Ethereum and alternative cryptocurrencies are once again surging. Ethereum and Solana, the second-largest crypto, reached 19-month highs. Ethereum witnessed a 5% surge, reaching $2,372, its highest level since May 2022. This rally had a domino effect, elevating the prices of other Ethereum-related cryptocurrencies. Ether Classic [ETC] saw a 6% appreciation, while the governance token [LDO] of the liquid staking protocol Lido increased by over 11%. Native tokens of Ethereum scaling networks Optimism and Arbitrum also experienced gains of 22% and 9%, respectively, during the day.

Litecoin’s Wallet Exodus: Biggest Drop Since 2022

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Litecoin has witnessed a substantial reduction in its active addresses, with approximately 200,000 or 2.13% of all LTC wallets liquidating over the past ten days. This decline represents the most significant drop in wallet numbers since October 2022. Notably, the wallets capitulating predominantly belong to small-scale holders, contrasting with the resilience demonstrated by Sharks and Whales in the cryptocurrency realm, Santiment reported. In terms of market value, Litecoin has recorded a massive setback, with a 55% decline over the past five months when compared to Bitcoin.

While several leading cryptocurrencies have demonstrated remarkable price surges, achieving over 100% Year-to-Date [YTD] gains, Litecoin has maintained a comparatively neutral stance, exhibiting a modest YTD increase of less than 4%. The coin’s price has displayed a consistent fluctuation within the range of $70.5 to $75.2 for nearly two weeks, followed by a confined trading range between $68 and $72 in the latter half of the month.

Litecoin
Litecoin's Wallet Exodus: Biggest Drop Since 2022 13

Although Litecoin has showcased considerable volatility, it remains premature to conclusively establish the correlation between the liquidating of assets by small wallet holders and its potential impact on Litecoin’s market value. As of the current writing, LTC has experienced a marginal recovery, trading at $74, reflecting a 6% increase in the last seven days.

Still, investors are cautioned to exercise vigilance and closely monitor developments, as the combination of Fear, Uncertainty, and Doubt [FUD] and the divestment by small wallets could introduce further uncertainties.

Litecoin Tops BitPay Payment Count

On a positive note, LTC has emerged as the favored cryptocurrency for payments on BitPay, the world’s largest crypto payment processor. It has asserted its dominance in real-world applications, with 34% of BitPay’s payment count by cryptocurrency, surpassing Bitcoin [BTC] and Ethereum [ETH].

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Litecoin's Wallet Exodus: Biggest Drop Since 2022 14

BitPay recently announced that Litecoin holders can now replenish their Microsoft accounts using LTC coins. Additionally, Litecoin’s acceptance at Mecum Auctions, a platform specializing in the sale of collectible cars and vintage motorcycles, further reinforces its practical utility. BitPay supports various cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash [BCH], Dogecoin [DOGE], Shiba Inu [SHIB], XRP, Dai, Binance USD, USD Coin, Wrapped Bitcoin [WBTC], Pax Dollar, and Gemini Dollar.


Ethereum’s Whales: Historic 1/3 Supply Control Since 2016

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The Ethereum community is buzzing with excitement as the richest ETH investors have significantly increased their token holdings. Recent data from leading data aggregator Santiment shows that these high-value wallets, known as whale addresses [holding a minimum of 1 million ETH], now control more than 32% of the available supply—a level not seen since 2016. Moreover, transactions exceeding $1 million experienced their second-highest volume in five weeks just a day earlier. Undoubtedly, these developments mark a historic moment in the altcoin’s history.

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Ethereum's Whales: Historic 1/3 Supply Control Since 2016 16

The unprecedented rise of these Ethereum whales to this level of dominance reflects a stark concentration of wealth within the network. This concentration, while not new in the world of cryptocurrencies, has raised concerns among experts and enthusiasts alike. Many are closely monitoring these developments, pondering the potential impact on the market’s stability and decentralization.

In addition to this remarkable milestone, Ethereum also witnessed a surge in high-value transactions, each valued at $1 million or more. Yesterday’s transactions marked the second-highest volume in this category over the past five weeks. The substantial movement of funds indicates a flurry of activity among institutional investors and high-net-worth individuals, underscoring the growing interest in Ethereum as a store of value and an investment asset.

Ethereum Grapple With Resistance As Whales Stay Resolute

While Ethereum’s price has been volatile, it recently bounced back from the support level at $1,533. As of the time of writing this piece, ETH is trading at $1,574. Analysts closely monitoring the market note that the major cryptocurrency is on the brink of a potential further decline if it breaches the $1,533 support threshold.

However, amidst this looming risk, recent findings from blockchain analytics platform Santiment indicate that Ethereum’s large holders, often referred to as whales, are strategically positioned to avert such a downturn. These significant investors could play a pivotal role in stabilizing ETH’s value, acting as a buffer against a more substantial price decrease. Their actions and decisions are being closely monitored by traders and experts, as they could significantly influence the market’s direction in the coming days.

Bitcoin’s $28k Leap As Dormant Forces Drive Market Momentum

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In a week marked by significant market fluctuations, Bitcoin [BTC] has surged past the $27,000 mark, registering a 4% gain in the daily index. This sudden upswing has been attributed to a notable spike in the age consumption metric, a measure indicating the movement of previously dormant BTC to different wallets. According to Santiment, the scale of this movement has not been witnessed since July 27, suggesting a renewed interest among traders and an overall revitalization in network activity.

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Bitcoin's $28k Leap As Dormant Forces Drive Market Momentum 18

Market analysts are interpreting this surge in dormant BTC activity as a potential precursor to a significant price uptick in the Bitcoin market. Such patterns have historically signaled positive developments for the digital asset. However, the crucial question remains: can this momentum be sustained?

Interestingly, the last time BTC experienced a substantial rebound was on October 12, coinciding with the release of the Consumer Price Index [CPI] data. The report revealed a 0.4% increase in household inflation for September, representing a notable 0.2% drop from the 0.6% recorded in August 2023. This decline in CPI has been interpreted by investors as a bullish indicator, sparking optimism in the market.

The CPI data published monthly serves as a pivotal economic indicator, offering valuable insights into inflation trends and predicting potential shifts in citizens’ investment behaviors in the months ahead. A decrease in pressure on disposable income often translates into more funds available for investment in risky assets like stocks and cryptocurrencies, making the current market conditions favorable for such investments.

Bitcoin: SEC Miss Appeal Deadline

The recent price movement in Bitcoin also coincides with another significant development: the US Securities and Exchange Commission [SEC] missed its deadline to appeal a court ruling related to Grayscale’s Bitcoin Trust [GBTC] conversion to an Exchange-Traded Fund [ETF]. Per a Reuters report, this move suggests a potential inclination on the SEC’s part to accept the court’s decision and approve the conversion of GBTC to an ETF.

As the market watches these developments unfold, investors remain cautiously optimistic, closely monitoring Bitcoin’s performance and regulatory decisions that could significantly impact the cryptocurrency landscape in the near future.

Ethereum Whales Resurge: $7M Transfer Sparks Speculation

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In a startling turn of events, a long-dormant Ethereum whale has sprung to life, executing a substantial transaction after three years of dormancy. A prominent Blockchain investigator, OnchainDataNerd, reveals a staggering transfer of 4,500 ETH, valued at nearly $7 million, to the Binance exchange.

Remarkably, this enigmatic whale initially acquired 11,900 ETH in June 2020 on the Bitfinex exchange, investing a modest $2.89 million. Fast forward to today, and Ethereum’s value has catapulted, with each coin now commanding a price of $1,542. This surge translates to a potential profit of $15.56 million should the whale opt to liquidate the entirety of their initial investment.

However, this notable transfer pales compared to the broader movement of Ethereum to centralized crypto exchanges. Recent disclosures from prominent blockchain tracker Whale Alert expose 59,860 ETH migrating to two of the industry’s leading trading platforms.

Ethereum’s Future Takes an Intriguing Turn

WhaleAlert also reveals substantial deposits orchestrated by anonymous whales, funneling 22,699 ETH and 22,157 ETH into Coinbase, complemented by an extra 15,000 ETH directed at GateIO. This surge in cryptocurrency totals a notable $92.3 million in fiat, showcasing the magnitude of these transactions within the crypto realm.

Fresh insights from on-chain data analyst Santiment, unveiled earlier this week, shed light on an intriguing trend among Ethereum’s top 10 wallets. Regardless of their affiliation with exchanges, these addresses are amassing substantial quantities of the second-largest cryptocurrency.

Presently, the top 10 addresses associated with exchanges account for a significant 8.51% of Ethereum’s overall supply. Meanwhile, wallets independent of exchange platforms have substantially bolstered their holdings, boasting an impressive 39.22 million ETH.

The cryptocurrency community watches with bated breath as Ethereum’s landscape evolves, witnessing unprecedented wealth distribution shifts and dormant whales’ resurgence. This unexpected turn of events leaves many speculating about the future trajectory of this dynamic digital asset.