Cryptocurrency prices took a dive yesterday after the US inflation reading. Bitcoin halted the declines, however, and is currently trading above $20,000:
- The Starbucks chain announced a partnership with the Polygon cryptocurrency to make the purchase and collection of unique NFT tokens available. Starbucks is pursuing a Web 3.0 program called 'Odyssey.' Altcoin, however, was unable to sustain gains and settled in the neighborhood of $0.85;
- Police in South Korea issued an arrest warrant for the creator of the Terra/Luna blockchain, DoKwon. In the Netherlands, in turn, the creator of the Electrum wallet was arrested and accused of 'money laundering' through the decentralized Bisq exchange and the anonymity-permitting cryptocurrency, Monero;
- Tether, the company behind the largest stablecoin USDT, has announced that it is collaborating and making USDT available under the NEAR Protocol. To date, the largest USDT 'clients' are Tron and Ethereum, with about 65 billion USDT tokens currently circulating on both networks.
The chart shows that there have been three recent UTXO sales (i.e. from wallets that never issued any tokens after purchase). All of these tokens were purchased in December 2013 when Bitcoin prices were just over $540 and sold in 28, 29 August and 04 September. The on-chain data has so far indicated only 11 instances when tokens held for 7-10 years were traded at more than 4,000 BTC per day. And as many as three cases out of all 11 occurred in the last 2 weeks. Source: Glassnode
When cryptocurrencies fell below $24,500 on-chain data allowed tokens trading volume to overtake, profit for many investors (especially short-term investors) turned into losses, which were ultimately mostly unrealized. Strong price movements often provide important on-chain information, in this case we can determine the percentage of supply that changed the holder (Percent Supply in Profit) in a given price range. On September 9, 48.1% of the total Bitcoin supply was in loss. With more losses belonging to short-term holders (9.3%) versus long-term investors (2.5%). The difference underscores the demand momentum that prompted short-term traders to enter the market when Bitcoin's spot price fell below the realized price (the average purchase price of Bitcoin on the blockchain). 11.8% of the market holds BTC purchased between $18,500 and $24,500. At the same time, nearly half of the supply is at a loss. All of this means that supply pressures could kick in as sentiment among short-term investors deteriorates. Source: Glassnode
Bitcoin chart, H4 interval. Yesterday's decline caused the price to slide below the 200-session average, which runs at $21,300. The RSI indicator fell to levels of 37 points, which in the past have heralded problems for the king of cryptocurrencies. Source: xStation5
