XRP has hit a new multi-year high after surpassing the $3 mark amid the market recovery. The ongoing rally has fueled investors’ and analysts’ bullish sentiment, suggesting that the race to a new all-time high (ATH) has started. Related Reading: Ethereum Recovers From Drop Below $3,000: Analyst Points At 2021 Rally Similarities XRP Hits $3 After Seven Years XRP has been one of the best-performing cryptocurrencies after the post-election pump, rallying over 450% since November 6. In the past two months, the altcoin has outperformed most of the market, holding above key support zones during the market’s corrections. In December, the cryptocurrency climbed to its multi-year high of $2.9, hovering between the $1.9-$2.7 price range for the rest of the month. Despite the broader market retraces, the altcoin held the range’s lower zone, confirming it as a key support level. Moreover, XRP has traded between the $2.1 and $2.6 levels for the past two weeks, holding above the $2.2 support amid the start-of-year pullbacks. Over the last few days, the cryptocurrency has been attempting a breakout, as some analysts noted. Analyst Carl Runefelt noted that XRP had been retesting the descending resistance of a one-month symmetrical triangle pattern, which targeted a surge to the December highs. On Wednesday, XRP’s price skyrocketed 30% from Monday’s lows to break above the key resistance level and reach a new multi-year high. As Bitcoin reclaimed the $98,00-$99,000 price range, the cryptocurrency soared 17% in the daily timeframe to briefly surpass the $3 barrier for the first time since 2018, trading just 12% below its ATH of $3.4. After the long-awaited milestone, XRP retraced to $2.9 again and is currently testing the resistance level as support. XRP’s Rally To New ATH ‘Just Started’ Analyst Ali Martinez shared that whales have noted XRP’s momentum as the number of large-scale transactions on the XRP network surged. According to the post, the network saw 341 transactions over $1 million in the last 24 hours. Crypto analysis firm Santiment also revealed that wallets holding 1 million to 10 million XRP have continued to accumulate the altcoin. The firm stated that these wallets have added around $3.8 billion in XRP since November 12, marking an increase of 37%. Meanwhile, Crypto trader Miky Bull pointed out that the altcoin has broken out of a multi-year downtrend line against its BTC trading pair. According to the post, the cryptocurrency broke above the trendline during its November breakout and has held above it for the past two months. Related Reading: Bitcoin Daily Close To ‘Dictate The Next Move’, Is Another Price Drop Ahead? Additionally, the trader highlights that, historically, whenever XRP broke out from its downtrend line against BTC, it would kickstart a massive rally to new highs. He suggested that if it were to repeat this behavior, XRP/BTC could be near 0.0004, which would see XRP’s price in double digits. Based on this, Miky added that the altcoin’s next target should be $4, which would represent a 37% increase from current prices. As of this writing, the altcoin is trading at $2.91, an 11% increase in the daily timeframe. Featured Image from Unsplash.com, Chart from TradingView.com
South Korea’s regulatory industry for cryptocurrency continues to evolve, with authorities adopting a cautious approach to corporate investments in digital assets. On Wednesday January 15, the Financial Services Commission (FSC) hosted its second Virtual Asset Committee meeting, where it discussed the progress of new crypto investor protection laws. While the agenda touched on various regulatory […]
Bitcoin (BTC) has rebounded to trade above $99,000 following its significant dip earlier this week. While the latest US Consumer Price Index (CPI) news appears to have contributed to this quick recovery, it has also drawn attention from analysts, who are closely monitoring key metrics to understand the market’s next move. A CryptoQuant contributor known as Crypto Dan recently provided insights into Bitcoin’s current market behavior. Highlighting the Short-Term Spent Output Profit Ratio (SOPR), Dan observed that the metric has shown a recurring pattern during correction phases. This pattern, he noted, typically dampens market optimism before a subsequent rebound. Despite the recent correction, signs point to the potential resumption of an upward cycle in the near future. Related Reading: Bitcoin Sharp Rebound Above $95K: Stop Hunting or Trend Reversal? Short-Term SOPR Analysis And What It Currently Suggests For BTC The SOPR metric measures the profitability of spent outputs relative to their realized value, providing insights into market participants’ behavior during price corrections. According to Crypto Dan, during corrections, the SOPR oscillates between red and green zones. The red zone signals increased profit-taking, often driven by whale activity, which can extend correction periods. Conversely, the green zone indicates reduced selling pressure, setting the stage for potential rebounds. Dan reveals that the SOPR currently shows a smaller volume of profit-taking compared to previous correction periods, such as the seven-month correction earlier in the year. This trend suggests that the recent correction, which has lasted over a month, may be shorter in duration. Dan speculates that Bitcoin could resume its upward trend within the first quarter of 2025. However, he cautioned that short-term volatility remains a risk, with the possibility of further sharp drops before a sustained reversal. The analyst wrote: However, in the short term, there may still be one or two sharp drops that push SOPR below the yellow dotted line, potentially crushing market participants’ hope for a rally before the market reverses upward. As such, aggressive short-term trades should be approached with caution. Bitcoin Market Performance And Outlook Meanwhile, Bitcoin appears to now be making its way back above the $100,000 mark as the asset currently trades at a price of $99,494, at the time of writing marking a 2.7% increase in the past day. This increase in Bitcoin’s price aside from being attributed to the underlying positive metrics on the BTC network can also be linked to the latest update on the US CPI. According to the latest reports, the US CPI rose by 0.4% in December—this news has resulted in the US Dollar seeing a notable plunge while other financial assets saw the opposite trend recording an uptick. Featured image created with DALL-E, Chart from TradingView
Former Thai Prime Minister Thaksin Shinawatra has proposed a significant shift in Thailand’s approach to online gambling and cryptocurrency regulation. Speaking at a public event in Bangkok, Thaksin outlined the economic potential of legalizing online gambling, a move he estimates could generate over 100 billion baht ($2.89 billion) annually in government revenue. Related Reading: Advisers […]
After Monday’s drop, Ethereum (ETH) fell below key support levels and hit its lowest price since November. Nonetheless, several market watchers remain bullish, predicting a massive rally for the cryptocurrency this quarter. Related Reading: Bitcoin Daily Close To ‘Dictate The Next Move’, Is Another Price Drop Ahead? Ethereum Drops To Two Month Lows Ethereum started the week with a significant correction, falling from the weekend range to its lowest price in two months. Over the weekend, Ethereum hovered between $3,200 and $3,340 after recovering from last week’s lows. Amid this performance, crypto analyst Ali Martinez pointed out that ETH’s most critical resistance was between $3,360 and $3,450, where 4.37 million addresses bought 6.47 million ETH. The analyst also noted that the cryptocurrency’s key support was between the $3,066 and $3,160 price range, where 4.12 million addresses had bought 4.9 million ETH. Ethereum tested this support zone during the December corrections, bouncing from the zone after the pullbacks. However, the king of Altcoins fell below this key support for the first time since November 9, hitting $2,920 on Monday. After the 12% retrace from the weekend highs, ETH tested its post-election breakout level, confirming the $2,900 price range as support. Ethereum quickly bounced from this level, surging 9% to the $3,100-$3,200 range. Crypto investor Miky Bull considers ETH’s recent performance the “perfect setup for a massive reversal.” The trader noted this could be the reversal that leads to a breakout from Ethereum’s inverse head and shoulders pattern. The second-largest cryptocurrency by market capitalization has been forming a multi-month inverse head and shoulder pattern, as noted by several analysts, with its left shoulder formed around the $2,800 price range. Rekt Capital had suggested that “any pullback close to the $3,000 level could see Ethereum develop a right shoulder.” Meanwhile, Miky Bull stated that the bullish setup targeted the $7,000 mark. ETH Resembles 2021 Trajectory Analyst Crypto Bullet pointed out that ETH’s chart resembled its 2021 behavior. The chart shows Ethereum saw a Double Top pattern during its rally over three years ago. Then, the cryptocurrency fell below the key support zone of $3,100, confirming the pattern. However, it reclaimed this level after consolidating for two weeks, which led to the breakout to ETH’s all-time high (ATH). According to the analyst, Ethereum is repeating this pattern after yesterday’s drop, suggesting that the cryptocurrency’s “worst-case scenario” would be hitting ATH levels again. Daan Crypto Traders highlighted ETH’s historical performance during the start of the year, stating that “the percentages ETH does within its first few weeks of the year are pretty crazy.” Related Reading: Ethereum Price Tests Limits: Can It Conquer the Uphill Task? CoinGlass data shows that Ethereum registered mostly negative weekly returns in the first weeks of 2024 but started a 6-week positive streak as February approached. This could suggest that ETH’s negative performance could be reversed in the coming weeks. Nonetheless, Daan advised investors to look at the quarterly returns for a better overview of seasonality. As of this writing, ETH is trading at $3,230, a 3% increase in the daily timeframe. Featured Image from Unsplash.com, Chart from TradingView.com
Bitcoin (BTC) witnessed a sharp decline below $90,000 yesterday, sparking concerns about its near-term stability. However, the cryptocurrency has since rebounded, trading back above $96,000 at the time of writing. This rapid recovery has drawn the attention of market analysts who are examining the underlying trends driving Bitcoin’s price movements. Related Reading: Rebound Alert: US Bitcoin ETF Interest Picks Up Speed In 2025 Is Bitcoin’s Surge Above $96k A Stop Hunt? A CryptoQuant contributor, Mignolet, shared an analysis highlighting the recent price dynamics. According to the analyst, the recent drop in BTC to $89,000 and the current recovery was triggered by the breaking of a key short-term support level. Mignolet revealed that this pattern, referred to as “stop hunting,” occurs when price movements break support levels temporarily before recovering. Despite the recovery, Mignolet emphasizes that a true trend reversal would require stronger involvement from key market participants. Mignolet’s analysis points to significant selling activity among whale entities, as observed in Coinbase Premium Gap (CPG) data. Typically, buying whales step in to absorb such dips, creating notable market volatility. However, this time, such activity was absent, raising questions about the sustainability of the ongoing rebound. Additionally, Binance’s market-buy ratio data suggests that large-scale buyers on the exchange have not capitalized on the recent price movement, indicating cautious sentiment among key players. Further evidence disclosed by Mignolet comes from the exchange-traded fund (ETF) daily inflow and outflow data, which is yet to confirm any major shifts in market dynamics. While the daily candle pattern suggests a meaningful move, the lack of participation from whales could limit Bitcoin’s ability to sustain a long-term reversal. Mignolet also warned that market sentiment might shift too quickly to optimism without clear supporting data. The analyst noted: While the candle pattern signifies a meaningful move, the major players are not capitalizing on the opportunity. What concerns me more is that many people’s sentiment may quickly shift to a sense of relief too soon. Bitcoin Market Performance After seeing a notable plunge in price yesterday dropping below $90,000 and triggering a total liquidation of over $300 million in the crypto market, Bitcoin is finally seeing a noticeable reversal in its bearish trend. Particularly, over the past day, Bitcoin has increased by 5.6% bringing its price to trade at $96,351, at the time of writing. However, despite this increase, the asset is still roughly a 10.8% decrease away from its peak above $108,000 recorded last month. While Mignolet’s analysis suggested that Bitcoin bearishness might not be over yet, it is worth noting that the asset’s current recovery coincides with reduced selling activity from long-term holders. Related Reading: Could Bitcoin Hit Its Peak In Summer 2025? Analysts Weigh In In a separate analysis, CryptoQuant contributor Darkfost revealed that the net position change of long-term holders (LTHs) over the past 30 days remains negative but shows signs of improvement. From a low of -827,000 BTC on December 5, the figure has improved to -246,000 BTC. This reduction in selling pressure suggests that LTHs are less inclined to sell at current price levels as Bitcoin’s price declines. However, Darkfost noted that for bullish momentum to regain strength, LTHs would need to shift toward accumulation rather than reducing sales. Featured image created with DALL-E, Chart from TradingView
The latest weekly report from CoinShares, a prominent European digital asset investment firm, reveals notable shifts in crypto asset fund flows. The report highlights inflows of $48 million into digital asset investment products during the past week. However, the overall picture appears to be more complex, reflecting the impact of macroeconomic factors and investor sentiment […]
Bitcoin (BTC) started the week in the red, falling to its lowest level in over a month. Amid this performance, some analysts consider BTC’s price will likely see another drop before the flagship crypto aims for new highs. Related Reading: Ethereum Tagged As Crypto’s ‘Most Cursed’ Coin—What’s Haunting It? Bitcoin Needs Daily Close Above $91,000 On Monday, Bitcoin shook off the weekend gains, dropping 5.8% to $90,300, its lowest price since November 18. The flagship crypto ended last week with an overall positive performance, nearing $96,000 and closing Friday above $94,000. This performance was held throughout the weekend, with Bitcoin moving between the $93,700 and $95,900 price range the past two days. This week started with seven straight red 1-hour candles, dropping below $91,000 for the first time since the December 19 correction and dipping lower than the December 5 pullback. However, Bitcoin bounced after dropping below this key level, recovering the recently lost mark. Crypto analyst Rekt Capital stated that BTC’s daily close will dictate the next move, suggesting it needs a close above $91,000 to confirm the reclaim. The analyst explained, “Last week, Bitcoin was deviating beyond the Range High resistance of $101,000. This week, Bitcoin is potentially deviating below the Range Low support of $91,000.” He asserted that BTC closed above the $101,000 range high last Monday but failed to retest it into new support after the breakout, reverting to the $91,000-$101,000 range. For this week, Rekt Capital added that even if Bitcoin closes the day below the $91,000 range low, it will likely need to turn that level into resistance for its price to drop into the $87,000-$91,000 range. Nonetheless, he stated that Bitcoin generally needs to close above this key level to persevere in its current range but noted that “a lot can change through the day.” Is A Dip To $87,000 Coming? Rekt Capital highlighted that BTC’s monthly returns tend to be “patchy and predominately bearish” in January. As CoinGlass data shows, Bitcoin’s performance has been mostly bearish in January. Since 2013, BTC has started the year in red seven times, including 2025’s current performance. According to the post, the market usually “picks up” in February. He added that the higher timeframe levels that are “teasing to be lost as support” are “likely to be reclaimed” in the future. Meanwhile, Altcoin Sherpa considers that “1 last liquidation wick” is due before “we reverse for BTC.” The analyst also suggested that Altcoins are likely to drop another 30%-50% before the Altseason. Similarly, Daan Crypto Trades pointed out that a “bunch of shorts have entered the market in the past few hours.” The trader noted that “price just keeps slowly dribbling back down” as these positions are usually “punished” when bulls are in control. Related Reading: Solana (SOL) Teeters on the Edge: Is a Steep Decline Next? Daan explained, “At some point, the shorts will have to close out, but they probably won’t do so before pushing the market down further, combined with the spot selling from Coinbase.” And added that “the slow grinds down end in a violent wick, after which shorts take profit, and we see a (local) bottom.” Additionally, the trader highlighted the similarities between BTC’s performance between December 2023 and January 2024 and December 2024 and January 2025. If history were to repeat, Bitcoin’s next move could be a correction to the $87,000 support, followed by a consolidation period in the new range. As of this writing, BTC is trading at $91,700, a 2.9% decline in the daily timeframe. Featured Image from Unsplash.com, Chart from TradingView.com
Bitcoin (BTC) has continued to exhibit bearish sentiment, currently trading below $91,000. This decline has sparked debates about its future trajectory, with analysts closely examining major market metrics to understand where BTC’s price action could likely be headed next. Among these, CryptoQuant contributor Percival’s detailed insights shed light on Bitcoin’s current state, offering an in-depth look at key market trends. Related Reading: Bitcoin Sentiment Plummets To Neutral: Reversal Signal? Bitcoin Market Dynamics And Key Indicators Percival’s analysis highlights Bitcoin’s seasonal behavior, which has consistently influenced its price patterns in recent years. Historically, the final months of the year see increased sell-side pressure, often extending into January. This year is no different, with institutional profit-taking and broader macroeconomic factors playing a significant role. Despite these challenges, Bitcoin has shown resilience, maintaining a $90,000 support level despite heavy selling pressure. According to Percival, Bitcoin has experienced a 13% decline in Open Interest, much of it attributed to institutional activity on platforms like the Chicago Mercantile Exchange (CME). Bitcoin exchange-traded funds (ETFs) have also seen a reduction in monthly inflows, dropping from $14 billion to $6.6 billion. These declines reflect broader market sentiment but also highlight Bitcoin’s ability to sustain critical support levels. On the sell side, Percival noted that December saw substantial pressure, with outflows reaching $200 million per day. However, this trend eased in January, with sell-side risk indicators showing a balanced market. This can be attributed to the Short-Term Holder Market Value to Realized Value (STH MVRV) remaining in a favorable zone, signaling that short-term investors are not facing unbearable losses. This stability suggests that short-term holders are unlikely to contribute to further downward pressure, creating an environment that supports Bitcoin’s $90,000 floor. Demand Trends and Future Scenarios While sell-side pressure has diminished, demand dynamics remain a critical factor in Bitcoin’s outlook. Percival highlighted a slight slowdown in on-chain volume, though it continues to hover around a healthy $12 billion across exchange inflows and outflows. Related Reading: 8 Bitcoin Price Predictions For 2025: What Banks, Hedge Funds And Experts Say This level of activity indicates that Bitcoin still retains strong market interest despite recent price declines. Percival also pointed to a potential risk in the gap between the STH MVRV average of 1 and the short-term holder cost base of $88,000. This gap could act as a “breathing space” for external market events to influence Bitcoin’s price, potentially challenging its ability to maintain the $90,000 support. However, for now, the balance between demand and sell-side risks suggests a period of consolidation rather than a significant further decline. Percival wrote: The odds favor the $90K floor, but beware! There is a gap in the STH MVRV between 1.08 and the average at 1 (STH cost base $88), and this difference can become the “breathing space” for an eventual external scenario, zeroing the possibility of going deeper! Featured image created with DALL-E, Chart from TradingView
Despite broader bearish trends in the cryptocurrency market, Tron (TRX) has demonstrated resilience with notable growth in key metrics. Recent analysis from CryptoQuant contributors sheds light on Tron’s expanding ecosystem and revenue surge, presenting a compelling case for its role in blockchain technology’s ongoing evolution. One major highlight is the substantial increase in Tron’s daily on-chain revenue. According to the data shared by the analyst, Crazzyblockk, this rise has been driven by the network’s enhanced gas fee revenue and higher transaction volumes. Additionally, Tron’s price movement appears to be now becoming interesting as it approaches critical support and resistance levels, which could dictate its near-term trajectory. Related Reading: TRON Reclaims Its Crown With 43% Dominance In Altcoin Transactions Daily Revenue Growth Reflects Network Utility Tron’s daily on-chain revenue has grown by 119% since January 1, 2024, a metric closely tied to rising gas usage and increased transaction activity on its blockchain, according to CryptoQuant analyst Crazzyblockk. This surge as disclosed by the analyst highlights Tron’s scalability in “processing high transaction volumes” while maintaining “cost efficiency.” The revenue growth also highlights the network’s expanding adoption within the decentralized finance (DeFi) and smart contract ecosystems. The network’s ability to generate substantial gas fee revenue serves as a benchmark for blockchain performance, with Tron’s figures signaling growing user engagement and utility. The analyst wrote: The year-to-date revenue expansion signals increasing user demand and network utility, further solidifying Tron’s position as a leading blockchain for high-speed, low-cost operations. Crazzyblockk also suggests that this trend reflects the network’s economic viability and its strengthening position among blockchains optimized for high-speed and low-cost operations. Additionally, this development is especially significant as blockchain networks compete to attract developers and investors with notable decentralized applications. The analyst concluded by noting: With this explosive momentum in daily revenue, Tron is setting a new standard for blockchain economic models. Investors, developers, and users alike should keep a close watch as this trend continues to reshape decentralized finance and smart contract adoption. Tron Approaches Key Level Meanwhile, from a technical perspective, Tron has reached a critical level near its 1-Year Moving Average (MA) plus two standard deviations, at approximately $0.25. Darkfost another CryptoQuant analyst warned that failing to hold this level could result in a decline to its 1-Year MA support of around $0.15. However, the analyst highlighted Tron’s ecosystem growth offers optimism for long-term investors. Related Reading: TRON Founder Justin Sun Expected to Meet Trump as Potential Web3 Advisor The network has seen notable activity, including a sharp increase in the USDT volume on its blockchain, which rose from $8 billion in early 2023 to $27 billion by late 2024. This growth points to strong adoption and an influx of capital into the Tron network. Additionally, metrics like the Moving Average Convergence Divergence (MACD) indicate that TRX was recently oversold, a condition that in the past has often preceded bullish momentum. Featured image created with DALL-E, Chart from TradingView
Solana (SOL) has seen a 12% retrace from the Monday high, falling to a crucial zone in the last 24 hours. Some analysts remain bullish ahead of Trump’s inauguration, while others have warned that the cryptocurrency’s bullish momentum could be in danger if the current levels are lost. Related Reading: Ethereum: Analyst Says $7,000 Target ‘Is Looming’ As Price Retests Crucial Level Solana Holds Key Support Zone Amid the market retrace, Solana has also lost its New Year highs, falling to its lowest price since the late December retrace. On Monday, SOL registered a 17.3% increase from its yearly opening after retesting the $220 mark. However, its bullish momentum was halted after Bitcoin’s price dropped nearly 8% in 24 hours. After hovering between the $190-$199 prince zone, Solana fell below the zone’s lower range, dropping to its current low of $182 on Thursday. In the last 24 hours, the cryptocurrency bounced above the $190 range before dipping to the $185 support zone again. A crypto investor pointed out that, despite the latest drop, Solana still holds the price target of $325, as it didn’t fall to the previous low of $175. The investor suggested that “as the downtrend is sharp, the uptrend is likely to be sharp as well,” adding that a “V-shaped rebound is likely to occur. The target price may be reached faster than the time shown in that pattern.” Trader Crypto General noted that SOL has tested the previous breakout level during the “much-needed correction.” Ahead of the post-election pump, the $180-$185 zone served as a key resistance level, which was later broken when Solana climbed above $200. Moreover, this level was retested as support during the late December retraces, serving as a bounce zone for the cryptocurrency. Crypto General suggested that the following days will be “very bullish for the market,” citing Trump’s upcoming inauguration as a potential catalyst. With Trump taking the oath, markets are expected to start a parabolic season, taking sol also along with them. My target is around $285. Analyst Warns Of These Levels For SOL Crypto analyst Ali Martinez warned investors about SOL’s current levels, stating that the cryptocurrency “must not break below $180.” A potential drop below this support zone could send Solana into a 20% to 30% decline. Martinez stated that the $150 to $130 range, not seen since September and October, would become “a likely target.” Similarly, analyst Jelle recently stated it would be “Worth keeping an eye on SOL/BTC for the coming weeks.” According to the post, SOL’s trading pair against Bitcoin has been at a key zone, suggesting that Solana should reclaim the 0.0022 level soon to continue its bullish momentum, as it currently sits at 0.0020. Related Reading: Bitcoin Eyes Potential Rebound To $98,600, But Analyst Suggests Caution Meanwhile, another market watcher noted that SOL’s performance during Q1 could be dampened due to “over-saturated positioning, a cooling off of pump fun metas, and the looming FTX SOL unlocks that was sold some time ago and have started unlocking, with the biggest unlock coming in March.” However, he considers that “from Q2 onwards,” Solana will be a “major winner” due to the possible launch of Solana-based exchange-traded funds (ETFs) and the “potential for new Pump.fun metas” reigniting its bull case. Based on this, the analyst predicts that SOL could hit $400-$500 this year. As of this writing, Solana is trading at $191, a 3.3% increase in the daily timeframe. Featured Image from Unsplash.com, Chart from TradingView.com
Ethereum has undoubtedly been under pressure despite the recent bullish rally in the broader cryptocurrency market as it struggles to make any major upside move. A recent analysis by ShayanBTC, a contributor to the CryptoQuant QuickTake platform, has shed light on key factors impacting Ethereum’s performance. In a post titled “Ethereum Faces Crossroads: Funding Rates and $3K Support Key to Sustaining Bullish Momentum,” Shayan highlights the asset’s struggles to maintain its upward trajectory. Related Reading: Ethereum Downswing To $2,900 Could Be A ‘Buy-The-Dip Opportunity’ – Analyst Expects Bullish Surge Funding Rates And The Importance Of The $3K Support Level According to Shayan, Ethereum’s bullish momentum has been significantly challenged by fluctuations in Funding Rates, a key indicator of demand in the derivatives market. While these rates initially rose during the recent rally in the crypto market, signaling growing confidence, there was a subsequent decline after Ethereum was rejected at the $4,000 resistance level suggesting reduced trader interest and commitment. Notably, the spike in Funding Rates during the rally pointed to cautious optimism among traders. However, the sharp decline in these rates afterward highlights a waning demand for Ethereum in the derivatives market. This shift raises concerns about the sustainability of the bullish trend, particularly in light of Ethereum’s inability to breach the $4,000 resistance. The $3,000 support level has emerged as a pivotal threshold for Ethereum. Shayan emphasized that maintaining this level is crucial for stabilizing the market and potentially reigniting bullish momentum. A failure to hold above $3,000 could trigger increased selling pressure, leading to a deeper market correction. The analyst wrote: Overall, Ethereum’s outlook depends on reclaiming higher Funding Rates and defending $3K. These factors will determine whether the market resumes its uptrend or faces further corrections. Ethereum Market Performance Meanwhile, Ethereum has continued to demonstrate downward movements, especially as the broader market has recently turned bearish. Over the past week, Ethereum’s market value has dropped by 6.2% bringing its price below $3,500. However, over the past day, there has been a slight uptick in ETH’s price as the asset records a 0.9% increase. This slight increase has pushed ETH’s price to hover above $3,200 at the time of writing marking a 33.9% decrease away from its all-time high of $4,878 recorded in November 2021. Related Reading: Ethereum: Analyst Says $7,000 Target ‘Is Looming’ As Price Retests Crucial Level Interestingly, despite the descent in ETH’s price in the past week, the asset’s daily trading volume has faced an opposite trend over the same period. Particularly, ETH’s daily trading volume has moved from $20 billion last Friday to now sitting at above $26 billion as of today. Given the current trend in ETH, it is worth noting that this increase in trading volume may be a result of the surge in buying pressure and selling pressure ongoing in the Ethereum market. Featured image created with DALL-E. Chart from TradingView
Ethereum (ETH) has seen an over 10% correction from the New Year highs amid the market retrace, recently falling below the $3,300 support. Despite the ongoing pullback, some analysts remain optimistic about ETH’s Q1 performance, suggesting new highs are around the corner. Related Reading: Bitcoin Eyes Potential Rebound To $98,600, But Analyst Suggests Caution Ethereum Forming Bullish Pattern Ethereum shredded its New Year gains today after falling below the $3,320 mark. Following the market retrace, the second-largest cryptocurrency by market capitalization saw a 14% drop from its Monday high of $3,744 to below the $3,300 support. During the start-of-year rally, ETH’s price recovered 20% from the correction’s lows, surging to pre-retrace levels for the first time in nearly three weeks. However, the market pullback, which saw Bitcoin fall 7.2% in 24 hours, sent Ethereum to the $3,210 level on Thursday morning. The $3,200-$3,300 price range served as a key support zone for ETH throughout December. After its recent performance, several analysts have suggested the cryptocurrency is forming an important reversal pattern, which could send ETH’s price to new highs. On Wednesday, crypto analyst Rekt Capital noted that Ethereum is forming a multi-month inverse Head and Shoulders pattern in the 1M timeframe. To the analyst, “it’s clear” that the $3,650-$3,760 area is “a major region of resistance, developing just below the $4,000, with price forming that resistance at a Lower High which could act as a Neckline to the pattern.” He stated that “its terminus point is at the psychological level of $3,000,” adding that “any pullback close to the $3,000 level could see Ethereum develop a right shoulder.” Similarly, As Ethereum dropped to the low of the key $3,200 range, Miky Bull highlighted the same pattern, hinting that the $7,000 target “is looming.” According to the chart, ETH’s price could see an 87.53% increase near the $7,400-$7,500 price range, based on the bullish setup. No More ‘Major Retraces’ For ETH? Crypto analyst Ali Martinez also shared his view on the bullish pattern, asserting a downswing to $2,900 “will be very bullish” for ETH. The analyst argued it would create “an excellent buy-the-dip opportunity to target $7,000 next!” However, it’s worth noting that the bullish pattern would be invalidated if Ethereum falls below $2,800, where the left shoulder formed. Meanwhile, another market watcher shared the similarities between ETH’s performance at the start of 2024 and 2025, highlighting the King of Altcoins falling below its yearly opening during January 2024 before climbing up the following month. Related Reading: ‘ADA Wave Is Coming’: Cardano Whales Go On Buying Spree As Price Attempts Breakout He stated, “I think it’s really important not to conflate a few days of red price action with high time frame bias. I am firmly of the opinion that this is a yearly open shakeout after some overly eager participants levered up too big, too early. I am very bullish on H1 2025.” Analyst Crypto Wolf considers there will likely be “little to no downside left,” suggesting that ETH could retrace another 4% to 7% maximum before it aims for all-time high (ATH) levels. As of this writing, ETH is trading at $3,255, a 2.15% decrease in the daily timeframe. Featured Image from Unsplash.com, Chart from TradingView.com
Republican state senator Dusty Deevers recently introduced a bill allowing Oklahoma employees and residents to opt to receive salaries in Bitcoin and enable businesses to accept BTC payments. Related Reading: South Korea To Ease Institutional Crypto Investment Restrictions This Year Oklahoma Senator Introduces Bitcoin Freedom Act On January 8, Senator Dusty Deevers announced the Bitcoin […]
Bitcoin market performance has faced a challenging start to the year, marked by a lesser upsurge and more bearish sentiment. Amid these fluctuations, insights from CryptoQuant analyst Avocado Onchain shed light on the current state of Bitcoin’s price movements and the factors influencing them. In a post titled “Bitcoin Price Correction: Short-Term Volatility Amid Long-Term Bullish Outlook,” Avocado analyzed key on-chain metrics, highlighting trends that may define Bitcoin’s immediate and future trajectory. Related Reading: Crypto Liquidations Near $690 Million As Bitcoin, Ethereum Crash On-Chain Metrics Hint At Bitcoin’s Next Move The analyst pointed out that the ongoing decline in Bitcoin’s price has been fueled by several factors, including uncertainty surrounding Federal Reserve rate adjustments, cautious market behavior ahead of political transitions, and concerns over state-held Bitcoin sales, which historically emerge during correction periods. These elements have combined to push market sentiment toward bearish territory. However, Avocado emphasized that the short-term outlook does not necessarily overshadow Bitcoin’s long-term potential for recovery and growth. Avocado’s analysis utilized on-chain data to assess the possibility of additional price corrections. One of the primary indicators examined was the Taker Buy/Sell Ratio (30-day moving average), which revealed a dominance of sell-side activity. Following Bitcoin’s price surge in March 2024 and its recent all-time high, this ratio trended downward, signaling an overheated market. This pattern historically precedes periods of price decline, indicating potential for further corrections. Another metric, the Short-Term Spent Output Profit Ratio (SOPR), which measures short-term investors’ profitability, has dropped below 1. This indicates that many short-term holders are selling at a loss, a behavior that has been observed during prior correction phases. Similarly, the Funding Rates (30-day moving average), a measure of market sentiment among leveraged traders, is trending downward. Negative funding rates often precede a bearish market shift but can also pave the way for eventual recovery once sentiment stabilizes. Avocado wrote: While this analysis focuses on short-term price movements, Bitcoin is likely to rebound in the long run and resume its upward trend after completing the correction phase. Investors should remain strategic, avoid reacting to short-term noise, and focus on the broader bullish trajectory. Related Reading: Bitcoin Is Forming A Symmetrical Triangle – Breakout Or Breakdown? Bitcoin Market Performance Meanwhile, Bitcoin has continued to demonstrate bearish movements especially with its price now trading for $92,317, at the time of writing down by 3.3% in the past day. One of the major factors that have contributed to the ongoing bearish sentiment in the Bitcoin market appears to be the resurfacing of the US government wanting to sell the seized BTC from Silk Road which now amounts to roughly $6.5 billion. The US Govt has been given the greenlight to liquidate 69,000 BTC ($6.5B) from Silk Road, an official confirmed to DB News today Interesting situation less than 2 weeks away from the new admin who vowed to not sell https://t.co/HqD1KnhJK3 pic.twitter.com/xn8ATSEL7H — db (@tier10k) January 9, 2025 Featured image created with DALL-E, Chart from TradingView
Bitcoin journey in the new year continues to demonstrate less upward momentum, with its price recently dropping below the $95,000 price mark. Amid this movement, the market seems to be witnessing a notable trend among miners as they grapple with the effects of rising values and selling pressure. Insights from XBTManager, a CryptoQuant contributor, shed light on the challenges facing Bitcoin miners and the broader implications for the cryptocurrency market. Related Reading: Bitcoin May Rally In Q1 2025 Driven By US Fed’s Money Printing, Predicts Arthur Hayes Miners Feel the Pressure As Bitcoin Remains Below $100K In a post titled “The Strong Remain, the Weak Exit the Market,” XBTManager highlighted that Bitcoin’s appreciation has placed miners in a “precarious” position. The recent price surge above $100,000 initially brought substantial gains for miners, but subsequent corrections have intensified selling activity. According to the analysis, miners have entered a state where their positions are “extremely underpaid,” leading to significant financial strain. XBTManager wrote: Following a sharp pullback in Bitcoin’s price, it entered a correction phase and rose again to the 102k levels, only to trigger another wave of heavy selling. As Bitcoin climbed to 102k, miner positions, which were in a “fairly paid” state, transitioned to an “extremely underpaid” state as selling pressure intensified at that level. Notably, as weaker miners exit the market, those with greater resilience are expected to persist, potentially opening opportunities for investors. XBTManager’s outlook suggests that assuming the current bull market remains intact, the ongoing challenges for miners could present favorable conditions for strategic buying. MVRV Indicator Hints At Bitcoin’s Continued Growth Potential Another CryptoQuant contributor, CryptoOnchain, offered an additional perspective on Bitcoin’s market cycle. Analyzing the 100-day MVRV (Market Value to Realized Value) ratio, CryptoOnchain argued that Bitcoin has “yet to reach its peak” for this cycle. Historical data shows that the MVRV ratio reached a value of 3 during the market tops in the last two cycles. At present, this ratio stands at 2.14, indicating potential for further upward movement. 100-day moving average of MVRV: Bitcoin has not yet reached the top price of this cycle “MVRV metric reached the value of 3 at the market tops in the past two cycles, whereas it currently stands at 2.14… it can be said that Bitcoin is preparing to move towards the top price of… pic.twitter.com/YlNLQwgE3w — CryptoQuant.com (@cryptoquant_com) January 9, 2025 The MVRV metric, which helps identify market tops and bottoms, signals that Bitcoin may be preparing for another price surge in the coming months. Related Reading: Bitcoin Faces Mixed Signals: Institutional Investors Accumulate Amid Retail Weakness If the pattern from previous cycles holds true, Bitcoin could be on track to approach a new peak before the current cycle concludes. CryptoOnchain particularly concluded by noting: Based on this, it can be said that Bitcoin is preparing to move towards the top price of this cycle, which is likely to occur in the coming months. Featured image created with DALL-E, Chart from TradingvIEW
Bitcoin has experienced notable price volatility since the start of the year, with its performance showing mixed signals. Institutional investors, however, appear to have maintained their confidence in the asset despite recent market corrections. According to a recent analysis shared by CryptoQuant contributor caueconomy on the QuickTake platform, institutional players have been strategically accumulating Bitcoin, suggesting long-term confidence in the asset’s value trajectory. Related Reading: Bitcoin Is Forming A Symmetrical Triangle – Breakout Or Breakdown? Bitcoin Institutional Accumulation Signals Market Confidence caueconomy revealed that on December 21, investors sold approximately 79,000 BTC within a week, triggering a significant market correction of around 15%. This sell-off marked a local top and was followed by a phase of price consolidation. However, instead of exiting the market, large investors utilized the price dip to open Time-Weighted Average Price (TWAP) positions, gradually accumulating Bitcoin just below the $95,000 mark. Over the past 30 days, institutional players have added more than 34,000 BTC to their portfolios, creating a layer of buying pressure that supports Bitcoin’s current recovery phase. Interestingly, the analyst pointed out that this trend has been consistent since June 2023, even during periods of rebalancing in institutional portfolios. While retail investor demand has hit a five-year low, institutional interest remains notably strong, indicating a divergence in market behavior between retail and institutional participants. This sustained accumulation suggests that large investors anticipate long-term value Increased Selling Pressure On Binance Sparks Market Concern While institutional accumulation has provided some support for Bitcoin’s price, another CryptoQuant contributor, Darkfost, highlighted growing selling pressure on Binance, one of the world’s largest cryptocurrency exchanges. In a separate analysis, Darkfost noted a sharp increase in hourly Net Taker Volume, which turned significantly negative, peaking at -$325 million — the highest figure recorded in 2025. This surge in selling pressure coincided with the release of unfavorable economic data from the ISM PMI and JOLTs Job Openings reports, which affected broader market sentiment across risk assets, including cryptocurrencies. Related Reading: Bitcoin Signal That Took Price From $69,000 To $108,000 Appears Again The data triggered a wave of sell orders, causing Bitcoin’s price to face additional downward pressure. Darksfost suggested, noting: Monitoring this indicator, along with others, will be essential to determine whether fear is starting to dominate the markets over the long term or if it is merely temporary. Despite this intensified selling activity, Bitcoin has managed to maintain support above the $95,000 level. At the time of writing, the cryptocurrency is trading at $95,586, reflecting a 5.2% decline over the past 24 hours. The price remains significantly below Bitcoin’s all-time high of $108,000, recorded last month, marking an 11.8% drop from its peak. Featured image created with DALL-E, Chart from TradingView
Recent reports revealed that South Korea is set to ease its restrictions on institutional crypto investment. Secretary-General of South Korea’s Financial Services Commission (FSC) announced the watchdog’s plan to review its restrictions amid the ongoing changes in South Korea’s regulatory approach. Related Reading: UK Authorities To Seize $4.3 Million In Bitcoin From Fugitive Crime Boss […]
IMF recommended that Kenya overhaul outdated regulations, address scams and align its crypto framework with global standards for financial stability.
The cryptocurrency market has shown heightened activity in early 2025, with Toncoin (TON) emerging as one of the spotlighted assets following an analysis shared by a CryptoQuant analyst, Burak Kesmeci. According to recent data, the 90-day percent return metric for TON indicates the early stages of an uptrend, raising expectations of a sustained rally in the coming weeks. This trend has been observed historically, with similar metrics signaling substantial gains in past bull cycles. Related Reading: Toncoin Price Recovery Continues — Is The Dwindling Staking TVL Ratio Bullish? Historical Data Suggests Strong Price Potential Kesmeci disclosed that historical analysis reveals that TON has previously demonstrated notable performance following reversals in the 90-day percent return metric. For example, in August 2023, TON rose from $1.72, delivering a 65% gain over 70 days. Similarly, in February 2024, the asset surged by 258% in just 43 days after a similar metric reversal. The most recent example, recorded in November 2024, saw TON climb 32% within 11 days. These instances suggest that when the 90-day percent return metric crosses into positive territory, it often serves as a precursor to significant upward price movement. The current trend, which began just seven days ago, has sparked optimism among investors who are considering short-term accumulation strategies. Kesmeci reveals that if historical trends persist, TON could experience a median gain of 65% over the next 43 days. The analyst wrote: Currently, we observe that the “90-day percent return” metric for TON has entered a bull trend for the fourth time. It has been only 7 days since this reversal. Based on previous data: Expected duration: 43 days (median value) Potential percentage return: 65% (median value) These insights suggest that TON is likely to continue its upward trend in the short term. However, it is worth noting that market conditions and external factors, such as overall sentiment in the cryptocurrency sector, could influence the trajectory of this trend. Toncoin Market Performance Since the year began, Toncoin has been unable to make a significant movement towards the upside. Instead, the altcoin has continued to face consistent decline. Over the past two weeks, TON has now plunged by a double-digit performance of nearly 12%. This has brought the asset’s price to currently trade below $6 as of today marking a 7.5% decline in the past 24 hours. Interestingly, despite the consistent decline from TON in recent weeks, the asset’s daily trading volume has seen an opposite trend. Related Reading: Toncoin Consolidates: Could A Breakout Push TON Higher? Particularly, in the past 7 days, TON’s daily trading volume has moved from $200 million last Wednesday to now sitting at roughly 344 million as of today. Given the current trend in TON’s price, it is worth noting that this increase in TON’s trading volume might be from the continuous selling pressure in the TON market. Featured image created with DALL-E, Chart from TradingView
The market’s New Year rebound turned into a start-of-year retrace after Bitcoin (BTC) dropped from the recently reclaimed $100,000 support into the $94,000 territory. Amid the drop, an analyst shared his “cautiously bullish” outlook for BTC’s price. Related Reading: ‘ADA Wave Is Coming’: Cardano Whales Go On Buying Spree As Price Attempts Breakout Bitcoin Risks Crash To $74,000 On Tuesday, Bitcoin dropped below $97,000, dragging the market into the first pullback of the year. BTC began 2025 trading around the $92,000 level but climbed around 6.5% in the following days. After turning the $98,000 resistance into support over the weekend, Bitcoin jumped back above $100,000, reaching its highest price in weeks. However, BTC struggled to maintain this key support zone, dipping 3% in an hour yesterday. The cryptocurrency has dropped another 2.5% in the past day, falling as low as $94,500 on Wednesday morning. Since then, BTC has hovered between $94,800 and $95,600, briefly testing the $96,000 resistance. Crypto analyst Ali Martinez examined BTC’s recent performance. In an X threat, the analyst noted that Bitcoin had “breached the right shoulder of a head-and-shoulders pattern” on Monday, invalidating the bearish setup pattern. However, the reversal “erased those gains, dragging BTC back below the right shoulder and reigniting bearish concerns,” as this pattern could trigger a correction to at least $78,000. Martinez also pointed out that Bitcoin has fallen below a key demand zone, between $95,400 and $98,400, where 1.77 million addresses acquired over 1.53 million BTC. The analyst suggested the price drop could force these holders to “sell some BTC to cut potential losses.” He also noted there isn’t significant resistance ahead for the flagship crypto, with only a minimal supply wall of 107,000 BTC between $104,700 and $105,770. Nonetheless, the analyst warned that a surge in selling pressure that pushes the cryptocurrency below the $92,000 mark “could spell trouble,” as it would open “the door to a steep drop, with little support until $74,000.” “Therefore, the current market conditions, from a macro perspective, are reigniting fears of a potential Bitcoin crash,” he added. BTC Price Set To Bounce Soon? The analyst also shared a “cautiously bullish” outlook for BTC from a technical perspective. Martinez pointed out that TD Sequential presented a buy signal on Bitcoin’s 4-hour chart, suggesting a potential price rebound if the price can hold the $93,500 support zone. Additionally, he highlighted that traders on Binance “are leaning bullish on Bitcoin,” as 61.28% of all traders on the crypto exchange with open positions are betting that the price will go up. Martinez also noted that $35 million would be liquidated if BTC’s price rebounds to $98,600, suggesting that market makers “may try to grab” it. Similarly, there’s another $66 million liquidation zone above $103,300. Related Reading: Crypto Trader Makes $21 Million From AI Agent Token As Sectors Faces Backlash However, the analyst emphasized that Bitcoin must reclaim the $100,000 support to invalidate the bearish outlook and “set its sights on new all-time highs.” Martinez concluded that BTC could rebound to $98,600 in the short term, but “the macro suggests caution.” As of this writing, Bitcoin is trading at $94,500, a 3.3% retrace in the daily timeframe. Featured Image from Unsplash.com, Chart from TradingView.com
Ripple president Monica Long added that XRP will likely receive its spot ETF approval “very soon.”
A UK judge has ordered the seizure of $4.3 million in Bitcoin (BTC) from a British crime lord known as “Don Car-Leone.” The ruling comes after the fugitive failed to prove the crypto holdings weren’t related to criminal activities. Related Reading: Bitcoin ETFs Dominate 2024: Crypto Fund Flows Hit Record $44.2 Billion Inflows – Report […]
HashKey Group, a prominent Asia-based cryptocurrency financial services firm, has successfully obtained Virtual Asset Service Provider (VASP) registration approval from the Central Bank of Ireland through its European arm, HashKey Europe Limited (HEL). This milestone marks a significant step in HashKey’s global expansion strategy, as it is “HashKey Group’s first VASP license fully compliant with […]
Bitcoin (BTC) has seen bullish but unsteady price action in early 2025, with recent data highlighting shifting sentiment among US investors. After briefly crossing the $102,000 mark yesterday, the asset has struggled to maintain upward momentum, shedding most of its recent gains as it stands at just below $100,000. These developments coincide with critical insights from key on-chain metrics that offer a clearer view of Bitcoin’s short-term trajectory. Related Reading: Bitcoin Forms First Daily Death Cross On Dominance Chart In 4 Years, What To Expect Next Bitcoin’s Price Struggles Despite Positive Coinbase Premium Index Signal A CryptoQuant analyst known as Burak Kesmeci recently shared insights on the Coinbase Premium Index (CPI), which turned positive for the first time in 2025. The CPI measures the price difference between Bitcoin on Coinbase and other global exchanges, serving as a crucial indicator of US investor sentiment. 3 days ago, Coinbase Premium Index crossed SMA14 for the 1st time in 26 days—Bitcoin is now up 4% to $102K. In Nov 2024, a similar move saw Bitcoin rally from $69K to $108K. U.S. buyers could be back in action. pic.twitter.com/XtAlHUzzvv — CryptoQuant.com (@cryptoquant_com) January 6, 2025 Alongside this positive shift, a notable 4,012 BTC outflow from Coinbase was recorded, signaling renewed buying interest among US-based investors. Historically, such patterns have been associated with a rise in buying pressure, often laying the groundwork for potential price surges. Despite these positive signals, Bitcoin’s price performance remains restrained. After briefly surpassing $102,000 on December 6, Bitcoin retreated and now trades below $100,000, reflecting a modest 3.3% decrease over the past 24 hours. This price mark from the largest cryptocurrency by market capitalization puts it at approximately 8.9% below its all-time high of $108,135, achieved in December 2024. Bitcoin Faces Key Resistance Levels Notably, the current price action from BTC suggests that while buying pressure exists, it may not yet be sufficient to trigger another strong rally. According to cryptocurrency analyst Ali, Bitcoin maintains a critical support zone between $95,400 and $98,400, where over 1.77 million addresses collectively hold 1.53 million BTC. Related Reading: Bitcoin’s Miner Sentiment Signals: Are We Nearing a Market Rebound? This support zone remains essential for stabilizing Bitcoin’s price amid market uncertainty. Conversely, resistance appears limited, with only 107,000 BTC supply positioned between $104,700 and $105,770. This relatively thin resistance could pave the way for upward movement if buying pressure intensifies. #Bitcoin sits well above an important support zone between $95,400 and $98,400, where 1.77 million addresses bought over 1.53 million $BTC. However, there isn’t significant resistance ahead, only a minimal supply wall of 107,000 #BTC between $104,700 and $105,770. pic.twitter.com/MEATFegTV2 — Ali (@ali_charts) January 7, 2025 Meanwhile, zooming out, analysts remain bullish overall on Bitcoin. Captain Faibik for instance has recently shared his outlook on BTC suggesting that the asset is still poised for a rally to $112,000. Featured image created with DALL-E, Chart from TradingView
The cryptocurrency market, led by Bitcoin, has often followed a pattern of alternating growth and decline cycles, reflecting investor sentiment and market fundamentals. Since the beginning of the current bull cycle in January 2023, Bitcoin has demonstrated substantial gains in both price and market duration. Increased capital inflows from new investors have supported this growth and existing participants are reinvesting their profits. However, recent indicators suggest that the market may now be entering the latter stages of this cycle, raising questions about what lies ahead for Bitcoin and the broader crypto market. Related Reading: MARA CEO Advocates “Invest And Forget” Approach To Bitcoin, Citing Strong Historical Performance Key Indicators Point to Cautious Optimism A significant metric supporting this observation is the percentage of Bitcoin traded within the past month based on realized market cap – UTXO, which currently sits at 36%, according to a recent analysis shared by a CryptoQuant analyst known as Crypto Dan. In the analysis, Dan reveals that while this figure remains lower than peak levels observed in previous bull cycles, its downward trajectory suggests that the market is “progressing toward its cycle peak.” Dan anticipates that this peak could occur sometime between Q1 and Q2 of 2025. However, rather than a single explosive surge, historical trends indicate that the ratio could experience sharp increases two to four more times before the cycle concludes. This pattern typically signals market overheating, followed by a subsequent correction or bear cycle. Dan further highlighted that while the market still holds potential for gains, a conservative approach to risk management is advisable. Historically, late-stage bull cycles have been marked by increased volatility, as profit-taking begins to influence market behavior. Dan wrote: Nevertheless, from a conservative standpoint and with risk management in mind, caution is advised. For this reason, I am planning to gradually sell my holdings. Another critical observation from on-chain data is the relationship between short-term traders and long-term holders. Historically, a sharp increase in short-term trading activity often precedes a market correction. Traders who entered the market during recent price rallies may begin to sell off their holdings, leading to temporary downward pressure on prices. Conversely, long-term holders often remain resilient during these periods, providing a stabilizing force in the market. Bitcoin Sees Recovery As The New Year Begins After weeks of struggling and remaining below $100,000 in the last month of 2024, Bitcoin appears to have now resumed its bullish momentum as the first month of 2025 commences. Although, BTC entered the new year with a price below $95,000. However, a few days later, the asset continued its upward momentum, reclaiming the $100,000 price mark to currently trade at a price of $101,624. At the time of writing, BTC recorded a 3.9% increase in the past day bringing its price closer to its recently established all-time high above $108,000 last month. Featured image created with DALL-E, Chart from TradingView
Some crypto traders have made millions of dollars from the latest leading narrative, Artificial Intelligence (AI) related tokens. However, the sector’s quick rise in popularity has received backlash from several community members and industry figures, who consider the tokens “worse” than the memecoin trend. Related Reading: Bitcoin Bounces Back Above $100K – Is the Bull Run Resuming or a Correction Ahead? Crypto Traders Make Millions From AI-Related Tokens On January 6, on-chain data analysis firm Lookonchain shared that a smart Solana trader obtained massive returns from AI agent and memecoin ai16z (AI16Z). The investor turned $2 million into $21 million in less than two months amid the AI-related tokens rally. The AI-managed crypto fund is on the Solana blockchain and governed by the ai16zDAO. Its name is a wordplay originating from the venture capital firm Andreessen Horowitz, also known as a16z, seemingly created to bring attention to the project. According to the post, the whale purchased 10.6 million ai16z, worth $2.27 million, between November 15 and November 22, 2024, at an average cost of $0.214. Since then, the cryptocurrency has seen a 965% surge to trade around $2.28. At the time of the report, the investor’s holdings were valued at around $21 million, making $19 million in unrealized profits. Earlier today, the whale sent 5.3 million ai16z, worth $10.68 million, into Jupiter to sell via limit order. Meanwhile, another trader turned $123,000 into $4.5 million after betting on ai16z when the token’s market capitalization was $22 million. The whale purchased 6.17 million ai16z and sold 4.67 million for around $1.78 million last month. The investor currently holds 2.65 million ai16z tokens, valued at $2.9 million, bringing the total profits to more than $4.5 million in two months. This whale also made another $13.4 million from other AI crypto tokens like GOAT, FARTCOIN, and ARC. Community Calls AI Agent Tokens ‘Overrated’ In late 2024, AI Agent tokens gained massive popularity among crypto investors, with several experts predicting that AI-related tokens, alongside memecoins, would be the largest narrative of this year. Meanwhile, AI memecoins stole the spotlight as the year ended, sending some of the tokens in the sector to the top 10 memecoins ranks in late December. Ai16z, the largest AI memecoin by market capitalization, has seen a 251% increase in the past month, hitting an all-time high (ATH) of $2.47 on January 2. The token is also the third-largest AI agent crypto and has seen a 25% surge in the last 24 hours, trading between $2.25 and $2.28 throughout Monday morning. Nonetheless, the sector has received heavy criticism recently from the crypto community. On-chain sleuth ZachXBT recently called AI agent tokens a scam. Responding to Justin Taylor, another industry member, the crypto detective stated that “99% of it is a scam” and suggested that “the AI agent wrapper grifts are probably worse than other past trends.” Related Reading: Litecoin Comeback: LTC Breaks Free And Guns For $400 Zach argued that memecoins “at least” promised nothing, “AI coins try to larp as much as possible to appear legit to unsuspecting buyers.” Similarly, Solana founders consider AI agent tokens to be overhyped. According to an anonymous poll of 42 Solana founders, several of the polled considered AI Agents, alongside Blinks, to be the “most overrated Solana sector.” Despite the criticism, the sector still registers a 5% increase in the last 24 hours, with a daily trading volume of $2.28 billion and a market capitalization of $17.5 billion, according to CoinGecko data. Featured Image from Unsplash.com, Chart from TradingView.com
Authorities worldwide appears to be ramping up efforts to combat cryptocurrency scams and AI-related fraud, as these threats continue to evolve and target unsuspecting victims. Recent cases from Vietnam, the United States, and Hong Kong highlight the growing sophistication of these criminal activities and the global response aimed at dismantling these operations. Notably, with cryptocurrency […]
After weeks of trading below the critical $100,000 mark, Bitcoin has started 2025 with renewed bullish momentum. The cryptocurrency, which had been struggling since last month, has shown signs of recovery, climbing back above the psychological $100,000 threshold earlier today for the first time in recent weeks. Bitcoin entered the year trading between $93,000 to $95,000 but has now regained momentum as its current trading price sits at $102,368. Over the past 24 hours, Bitcoin has surged by a 4.5% increase, bringing it closer to its all-time high of $108,000 achieved in late 2024. This upward movement has reignited optimism among both retail and institutional investors, with many closely watching key market indicators to understand whether Bitcoin can sustain this momentum or if another correction might be on the horizon. Related Reading: Bitcoin Forms First Daily Death Cross On Dominance Chart In 4 Years, What To Expect Next What Bitcoin Short-Term Holder Realized Price Indicates CryptoQuant analyst Yonsei Dent recently shared an analysis of Bitcoin’s price dynamics, highlighting the role of the Realized Price of Short-Term Holders (STH) as a key breakeven point. The Realized Price represents the average purchase price of Bitcoin by short-term holders, segmented into two critical bands: 1-week to 1-month (1W-1M) and 1-month to 3-month (1M-3M). Historically, the 1M-3M band has consistently acted as a medium-term support zone, while the 1W-1M band reflects short-term market sentiment. When the gap between these two bands widens, Bitcoin often experiences consolidation or corrective phases until they converge again. Currently, Bitcoin is encountering resistance at the 1W-1M band. However, the 1M-3M band continues to provide strong support, indicating a potential accumulation opportunity for medium-term investors. Yonsei Dent emphasized that monitoring the interaction between these two bands is essential for identifying market trends. As they move closer together, Bitcoin may experience a period of relative stability before determining its next significant price direction. Further Upward Momentum Expected? Another CryptoQuant analyst, Joohyun Ryu, provided insights into Bitcoin’s recent correction phase, noting that while the market exhibited signs of cooling, key indicators suggest a potential rebound. Metrics such as Market Value to Realized Value (MVRV), Adjusted Spent Output Profit Ratio (aSOPR), and Net Unrealized Profit/Loss (NUPL) offer valuable context for assessing market sentiment. The MVRV ratio currently stands at 2.358, indicating that Bitcoin is trading at a moderate premium relative to its realized value. Similarly, the aSOPR metric, currently at 1.02, suggests that Bitcoin transactions are still yielding profits on average. Meanwhile, the NUPL value of 0.58 reflects a market sentiment that remains in a state of optimism despite recent price fluctuations. Ryu also highlighted the continued activity of short-term holders, noting their consistent market participation despite recent volatility. Related Reading: Analyst Identifies Bitcoin Key Support Levels Amid Rebound Challenge – Details This steady influx of new investors suggests growing confidence in Bitcoin’s long-term value proposition. Historically, such behavior has preceded significant upward price movements, reinforcing the notion that the recent market cooling phase may set the stage for a potential breakout. Featured image Created With DALL-E, Chart from TradingView
Pudgy Penguins’ NFT sales have plummeted 52% in the past week,