Bitcoin’s Already Hit the Local Bottom? Market Analysis

What Happened in Crypto Today: Has Bitcoin Already Reached a Local Bottom? Market Analysis

Crypto never disappoints.

Bitcoin has been on a wild ride for the last 12 days and it has been surprising us all.

One day the nose is up, the next day it’s down. Rinse and repeat.

For day traders, this must have become a full-time job.

Exciting? Maybe. Nerve-wracking? Definitely.

But let’s be real – isn’t this volatility the reason why cryptocurrencies are loved around the world?

So let’s take a deep dive into all the price action, indicators, and events that shook the cryptocurrency market in the last 24 hours.

And here’s your TLDR:

The indicator suggests that Bitcoin may be eyeing a comeback. But how accurate is this tool?

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Celsius is suing Tether for $3.5 billion. What kind of trouble is Tether in? 🧑‍⚖️

Ripple is launching a new stablecoin. What sets it apart from USDT? 💰

Japan’s central bank keeps things steady. But the opposition is strong… more volatility coming? 🇯🇵

You can now make money by making meme coins. But how much? 🤑

We will also provide a brief analysis of what is happening in the market and what might happen next.

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Is Bitcoin Bottoming? Signs Point to a Potential Reversal

Bitcoin appears poised for a comeback.

Following the early August drop, there are some interesting signals that have caught the attention of crypto analysts. The latest data from CryptoQuant suggests that we may have reached a “local bottom,” but let’s not get carried away just yet.

The tool they use is called NVT-GC, which is a way to compare Bitcoin’s market cap to its transaction value over time.

For now, it is showing signs of a possible recovery.

But is this tool completely accurate? Has it performed well historically? Read the full story!

Is Tether In Trouble?

The crypto world is facing a new legal drama.

Bankrupt cryptocurrency platform Celsius is taking Tether to court over a $3.5 billion dispute.

Here’s the deal: Celsius borrowed some USDT from Tether using Bitcoin as collateral. Things got complicated when Bitcoin’s price dropped.

Celsius claims that Tether rushed him to liquidate his Bitcoins without giving him a chance to add more collateral.

Tether calls the lawsuit an “extortion” and says they are playing by the rules.

According to them, Celsius knew about the situation and even approved the purge.

So, if Celsius manages to pull off a victory, what other setbacks could Tether face, aside from a hefty fine? Read the full story!

Ripple’s New Stablecoin Enters the Conversation

Ripple has launched private beta testing for its new creation, Ripple USD (RLUSD).

The story continues

This is a big step for the company as it aims to meet the growing demand for stablecoins and facilitate cross-border payments.

RLUSD is currently being tested on Ripple’s main platform, XRP Ledger, as well as on Ethereum.

Ripple has plans to roll out RLUSD to other blockchains and DeFi protocols in the future.

So when will it be officially launched? And what sets it apart from USDT? Read the full story!

A Yen for Stability

The Bank of Japan (BOJ) may be trying to catch its breath after its latest interest rate hike surprise.

Former board member Makoto Sakurai believes they will keep things stable for the rest of the year.

The unexpected interest rate hike in early August shook the markets. Stocks took a hit and the yen suddenly became the most popular trading opportunity on the forex market. The USD/JPY rate fell sharply, making low-interest yen loans much less attractive.

Cryptocurrencies were also affected by this situation, with their total market value decreasing by over $500 billion in a matter of days.

BOJ’s vice governor promises no more surprises in volatile times. But not everyone agrees. Japan’s opposition party is eager to question BOJ governor and finance minister.

So where is this debate headed? Will we see more interest rate hikes and therefore more volatility in global financial markets, including cryptocurrencies? Read the full story!

Make Money by Creating Meme Coins

The world of meme coins just got a little more interesting.

Pump.fun, the platform where meme dreams come true, has released a new update that has attracted great attention.

Here’s the news: they’ve removed the launch fee and are now offering a nice reward of 0.5 SOL (about $79) for successful token launches.

Previously, meme coin creators had to pay 0.02 SOL and reach a market cap of $69,000 for their coins to be traded on Raydium.

Now? It can be started for free and if your coin completes the bonding curve, you are looking at a payday.

So will 0.5 SOL affect the carpet pull rate in the meme coin world? Read the full story!

And a Brief Analysis…

One word that sums up the past week in the crypto world: WILD.

Come on, let’s take a look at what’s really going on.

First, let’s talk about the Sahm rule.

Source: FRED

Created by economist Claudia Sahm, the Sahm rule has been raising eyebrows in the financial world. Here’s the thing: When the three-month average unemployment rate rises half a percentage point above its 12-month low, it has historically signaled a recession.

As of August 2024, while the indicator showed 0.53%, we reached an increase of 0.5%.

Is recession inevitable?

Historically, this indicator has only once incorrectly indicated the beginning of a recession (in 1959).

But the point is that while the Sahm rule may be waving a red flag, other economic indicators are yet to join the recession chorus.

Now let’s talk about the elephant in the room: Bitcoin. Despite the recent turbulence, BTC is still on the rise since the beginning of the year.

In fact, the total crypto market cap started 2024 at $1.66 trillion, so overall we are still in positive territory (currently at $2.05 trillion).

Source: CoinMarketCap Live Charts

It’s a reminder that sometimes you have to step away to see the bigger picture.

Ethereum, on the other hand, faces some unique challenges.

With Grayscale’s ETHE fund experiencing significant outflows and Jump Crypto selling large amounts of ETH, there has been continued selling pressure.

But this pressure may not last much longer. Once these big players finish selling, we could see ETH regain some ground.

Speaking of recovery, let’s not forget Solana.

While most cryptocurrencies were taking a beating, SOL was enjoying the moment and showing impressive strength against ETH. Lesson: not all cryptocurrencies move at the same time.

But what about the broader economic picture?

The Fed’s potential rate cuts are generating excitement. The market is pricing in a high probability of multiple rate cuts by the end of the year. Historically, when the Fed starts cutting rates, it’s usually good news for risk assets like crypto. (NFA)

And there’s something you should pay attention to – global liquidity. The US Treasury Repurchase Program will inject $50 billion into the markets over the next three months. This kind of liquidity boost has typically been bullish for Bitcoin in the past.

Finally, let’s look at market sentiment.

The CMC Crypto Fear & Greed Index, which takes the current pulse of the entire cryptocurrency market, shows that we are in the “neutral” zone.

We have emerged from the “fear” zone we were in a few days ago.

So what should you do?

In times like these, it’s important to stay informed but not overreact.

Keep a close eye on these liquidity injections and how they may impact the market.

If you are holding ETH, be aware that selling pressure may ease soon and this could create opportunities (DYOR).

Remember, the crypto market is notoriously volatile. While it can be tempting to make moves based on short-term price fluctuations, focusing on long-term trends and fundamentals often yields better results. And as always, never invest more than you can afford to lose.