What Happened in the Crypto World Today: Bitcoin’s Favorite Month Has Arrived!
As we covered in detail yesterday, some indicators are pointing to potential bullish breakouts for Bitcoin – but the market seems determined to move in the opposite direction.
One FUD after another is hitting the cryptocurrency market, causing widespread declines.
This disconnect between bullish signals and bearish signals baffles many investors. But that’s the nature of cryptocurrencies. And we’ll unravel this market mystery in our analysis section at the end.
For now, let’s take a look at today’s top crypto news headlines:
MicroStrategy continues its Bitcoin buying spree despite financial hurdles. So what are their Bitcoin strategies? 🤔
Bitcoin suddenly dropped to $62,000, liquidating $310 million in long positions. So what exactly caused this market crash? Is there more to come?📉
BlackRock’s BUIDL fund pays $7 million in dividends. What’s behind this success in the current market? 💰
Ethereum remains stable at $2,860 support. So why isn’t it climbing higher on positive net ETF inflows? 🚀
A trader turns $8,000 into $800,000 in an hour with memecoin. What wallet address is this and how can you track its transactions? 🕵️♂️
And as always, a short market analysis at the end!
Let’s start!
MicroStrategy Faces Losses, But Bets Big on Bitcoin
MicroStrategy’s Q2 earnings call paints an interesting picture of the company doubling down on its Bitcoin strategy despite facing financial difficulties.
At first glance, the numbers don’t look very encouraging.
Earnings per share fell to $5.74, while revenue fell 7% year over year to $111.4 million, well below analysts’ expectations.
However, MicroStrategy added 12,222 Bitcoin to their holdings, bringing the total to 226,500 BTC. At current prices, that’s $14.7 billion worth of Bitcoin. They invested $8.5 billion in total, for an average cost of $36,821 per Bitcoin.
So what are the Bitcoin strategies? Read the full story!
Bitcoin’s Drop to $62,000
Bitcoin experienced a sharp decline, dropping from $64,000 to $62,800. This sudden move triggered a liquidation wave that wiped out $310.27 million worth of long positions in 24 hours.
The carnage was swift: $77.07 million worth of long Bitcoin positions were liquidated in one day, $26.6 million of which occurred in just four hours.
Biggest single hit? $4 million ETH-USDT swap on OKX.
Analyst DW says the situation is not yet “extreme” but draws attention to the lack of liquidity in the market.
So what exactly caused this market crash? Will there be more? Read the full story!
BlackRock’s BUIDL – $7 Million Dividend Success Story
BlackRock’s BUIDL fund is making waves in the tokenized asset world.
The story continues
It has paid out $7 million in dividends to investors since its launch in March 2024.
The growth trajectory is impressive. Dividends started at a modest $265,400 in its first month and skyrocketed to $2.12 million by July.
So what is this tokenized fund? And why is it making so much money? Read the full story!
Ethereum Holds $2,860 Support
Ethereum is showing serious staying power.
It has been holding strongly around the $2,860 support level since July 5, proving that buyer appetite is still high.
Deribit Insights is quite bullish on ETH’s prospects, targeting a potential rally to $4,500 riding the wave of excitement from recent US Ether ETF approvals.
On July 30 alone, nine spot Ether ETFs saw net inflows of $33.6 million.
So why is the price of ETH falling if net inflow is positive? Read the full story!
The Story of How to Turn $8,000 into $800,000 in One Hour
A savvy investor turned $8,500 into $800,000 in less than an hour.
How? Jumping in early to the CTO memecoin movement.
Lookonchain found that this trader purchased 256 million CTO tokens with just 50 SOL. They were only the third address to purchase.
An hour later, they cashed out 227 million tokens for a profit of $800,000.
The same trader had previously turned $3,400 into $104,000 with another token called PFI. Some call it skill, others scream ‘insider trading.’ Either way, it’s quite the winning streak.
How can you track which wallet address and transactions? Read the full story!
And a Brief Market Analysis…
Disclaimer: The information provided in this section is for informational and educational purposes only. It is not intended as financial advice and should not be construed as such.
In summary;
Bitcoin recently dropped to as low as $62,000, resulting in a $300 million loss on long positions.
Historically, August has been a tough month for Bitcoin, with negative returns in 8 of the last 11 years.
Analysts remain bullish in the long-term, predicting potential targets in the $95,000 to $120,000 range if key resistance levels at $67,000 and $71,500 (NFA) are cleared.
In Ethereum news, Grayscale’s ETH Trust has seen over $2 billion in outflows since its ETF conversion, while BlackRock’s iShares Ethereum Trust saw $89.6 million in positive inflows on August 1.
Bitcoin fell sharply to $62,000, wiping out $300 million worth of long positions.
First, let’s talk about August! According to Coinglass, it has historically been Bitcoin’s least favorite month.
Source: Coinglass
We have seen negative returns in 8 of the last 11 years.
While not exactly a confidence booster, past performance does not guarantee future results.
Despite short-term volatility, long-term forecasts remain bullish.
Analysts are pointing to potential targets between $95,000 and $120,000 based on technical patterns and historical cycle analysis (NFA). However, these projections are based on Bitcoin breaking through key resistance levels, particularly $67,000 and $71,500, according to these analysts.
Now let’s talk about Ethereum!
Ethereum markets are showing interesting dynamics. Grayscale’s ETH Trust has seen over $2 billion in outflows since its conversion to an ETF, while overall Ethereum ETF flows turned positive on August 1.
BlackRock’s iShares Ethereum Trust saw $89.6 million inflows, offset by Grayscale’s ongoing outflows.
So What Should You Do?
Keep a close eye on these important levels for Bitcoin (NFA) – $67,000 and $71,500, but always use stop-loss on trades.
Monitor both Bitcoin and Ethereum ETF inflows. If they continue to trend positively, it could be a sign of increasing institutional interest. You can easily track Bitcoin ETF inflows here!
Remember August’s track record, but don’t let it paralyze you. Every cycle is different.
And reconsider how much leverage you are using.