Bitcoin pinned below $20,000
Amid a deteriorating economic environment and the strength of the US dollar, Bitcoin (BTC USD) started the month sour. The leading cryptocurrency continued to slide over the past week, falling below $18,700 on September 7 to touch its lowest level since June 2022 before recovering.
A key reason behind Bitcoin’s ongoing downtrend remains investor risk aversion. Rising inflationary pressures and fears of a possible global recession are driving investors to invest primarily in the US dollar, while the 5-year US Treasury yield rose to 3.38% – its highest level in about 15 years.
However, despite the 3.50% drop in value over the past seven sessions, BTC investors continue to accumulate. According to the latest report from Glassnode, the number of BTC wallets holding ten or more BTC has increased from 150,363 to 150,515 in the few hours since BTC hit its 80-day low on Sept. 7. Similar levels of accumulation were also reflected in the BTC wallets ranging from 0.01 to 1 BTC
Altcoins outperform as Bitcoin bear market continues
ether (ETH USD) developers have confirmed that the “merge” will be implemented between September 13th and 15th. The news caught investor attention, sending the value of ETH up 4.75% over the past seven sessions, with the leading altcoin by cap currently trading just above $1,600.
Among the top ten cryptos by capitalization, Cardano (ADA), which will soon implement the Vasil update, gained about 5.75%. Solana also managed to stage a small comeback, posting a 3.70% gain over the past seven sessions. Meanwhile, Ethereum Classic (ETC) is up nearly 13.90% this week as the idea of ETH miners migrating to mining ETC continues to gain traction.
Ethereum’s second-largest mining pool, F2Pool, invited its existing ETH miners to pool their resources to mine ETC, RVN, and a few other proof-of-work (PoW) cryptos after the Ethereum merger, fueling the momentum boosted by Ethereum Classic.
Not to forget, EOS (EOS) rallied this week, up about 11.70%. Despite the broader market conditions, 24-hour trading volume for EOS increased by almost 140%. This quick appreciation follows the EOS Foundation’s rebranding and upgrade proposal. This initiative, called Antelope, aims to bring new improvements to all networks using the EOSIO framework.
Terra Classic rises from the ashes
What may surprise many is that Terra Classic (LUNC) — the new token launched after the Terra (LUNA) and UST stablecoins debacle — is up 76.30% over the past seven days. Between August 25 and September 1, more than $1.2 billion worth of investments flowed into LUNC, taking its market cap from $665 to $1.87 billion, with the market cap now increasing Approaching $3.4 billion.
A key reason for Terra Classic’s sudden surge is attributed to a 1.20% tax burn proposal. Learning from previous mistakes, the Terra Classic team decided to introduce a 1.20% tax on all on-chain LUNC transactions, including smart contract and wallet interactions.
According to the development team, this tax will help reduce LUNC’s oversupply and make it a deflationary currency. Leading crypto exchanges such as KuCoin and Gate.io have expressed their support for this proposal, further influencing investor sentiment.
Avalanche’s Flash Loan Exploit, New Ethereum ETP and more
Avalanche-based DeFi lending protocol Nereus Finance is the latest victim of a hack in which the attacker exploited its smart contract to wipe out around $371,000 worth of USDC stablecoins. A preliminary report by blockchain cybersecurity organization CertiK indicates that the exploit was discovered on September 6 in Nereus’ liquidity pools connected to Trader Joe DEX and Curve Finance AMM.
As the Ethereum merger approaches, Swiss-based digital bank SEBA Bank has launched a new service for its institutional clients. The bank has initiated an Ethereum staking service for institutions looking to invest their ETH tokens in the new Ethereum PoS chain to receive staking rewards. This follows similar moves by crypto banking platform Anchorage Digital, which launched its own ETH staking service for institutional clients.
Finally, ETC Group introduced a new exchange-traded product (ETP) based on the proposed EthereumPoW chain. After the merger, Ethereum will move to PoS, but several miners and industry leaders are pushing for a hard fork to launch a new EthereumPoW chain with a new ETHW token. This ETHW token will be the basis for ETC Group’s latest physically backed ETP, titled ETC Group Physical EthereumPoW or ETHWetc.
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