Monat: Juli 2022

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Bitcoin exchange outflows hit historic levels as ‘tourists’ exit

Bitcoin whales have withdrawn over 8 million BTC from exchanges to their own wallets, with Shrimps also putting a significant amount of coins into illiquid supply.

Most investors are under water as a result of the recent market sell-off, but rather than sell, on-chain data shows hodlers are digging in. This even as the market gets rid of weak hands with prices hovering at the crucial $20,000 level after dipping to lows near $17,600.

According to on-chain analytics platform Glassnode, Bitcoin investors last week continued to pull their holdings off exchanges,

Per Glassnode, the risk-off sentiment has seen exchange outflows soar to -151k/month in June. It’s the highest rate at which investors have taken BTC off exchanges, with hodlers retreating to the safety of offline wallets as they look to ride the crypto winter.

Exchange reserves fall to 2018 levels

According to Glassnode, aggregate exchange reserves have fallen remarkably over the past year, with continued large scale withdrawals pushing exchange balances to levels last reached in July 2018.

“Overall balance on exchanges have seen an aggregate outflow of -750k BTC since March 2020. The last three months alone have seen some 142.5k BTC in outflows alone, a remarkable 18.8% of the total,” Glassnode wrote in its weekly report.

As exchange net reserves dwindle, Bitcoin’s illiquid supply has increased as investors relocate their coins to wallets. On-chain data shows illiquid supply has jumped by over 223,000 BTC in July, while whales alone have withdrawn over 8.69 million BTC from exchanges Glassnode tracks.

Per the platform, exchange outflows have increased since April to hit 140 BTC/month in June.

Bitcoin ‘tourists’ annihilated

Bitcoin price dropped to lows of $17,600 in June, with intensified selling after the collapse of LUNA and subsequent rot hitting several crypto companies. Combined with broader market negativity, selling activity had the most impact on “market tourists” – the weak hands.

“Bitcoin has locked in one of the worst monthly price performances in history, with prices trading down -37.9% in June. Bitcoin has seen a near complete expulsion of market tourists, leaving the resolve of HODLers as the last line standing,” the analytics platform noted in its report.

But the percentage of BTC supply in loss is around 48.1% for all coins held off exchanges.

The post Bitcoin exchange outflows hit historic levels as ‘tourists’ exit appeared first on CoinJournal.

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SOL price outlook following bearish sentiment in cryptos

  • Solana’s SOL token plunges 79% YTD

  • Token affected by network outages and overall bearish market

  • SOL faces resistance at $36

Solana is an open-source blockchain project aimed at supporting decentralized applications. The network uses a hybrid consensus model comprising the proof-of-history and proof-of-stake algorithm.

Founded in 2017 by Anatoly Yakovenko and Greg Fitzgerald, Solana has been keen on making its transactions scalable and low-cost. Its developers cited the slow transactions in PoW networks and how its timestamp technology could solve the drawbacks.

Solana’s popularity surged in 2021 when it was poised to be the ‘Ethereum killer.’ However, the blockchain now seems to be a shadow of itself. Aside from the crypto crash in the first half of 2022, Solana has suffered numerous network outages. The challenges have shaken the confidence of its community driving value downwards.

SOL drops 79% year-to-date 

According to the year-to-date price outlook, Solana has plunged 79% since trading at $173. The sell-off has also seen the token tank 86% since peaking at $258 in 2021, according to data from CoinMarketCap. SOL’s market capitalization has then decreased from $77 billion to $12 billion.

Solana’s total value locked is currently at $2.61 billion at #5 behind Ethereum, BSC, Tron, and Avalanche as per Defi Llama. Ethereum and BSC have $47.43 billion and $6.23 billion in TVL, while Tron and Avalanche have $5.3 billion and $2.7 billion, respectively.

SOL meets resistance at $36 (4-hour chart) 

Source: TradingView

From the 4-hour chart above, SOL has found resistance at $36. The token is, however, showing some bullish momentum having moved from $32. The MACD indicator is also bullish. The latest data from CoinMarketCap shows that SOL is currently trading at $35.79, after a surge of 5.81% in the past day and a jump of $2.93% in the past week.

Summary

Although Solana seems to be losing popularity, traders can still benefit from the short-term gains. The recent network outages and the overall bearish sentiment are some factors affecting SOL price. A surge above the $35 resistance can usher in some bullish momentum, and the $42 will be the next resistance to watch.

The post SOL price outlook following bearish sentiment in cryptos appeared first on CoinJournal.

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Elon Musk’s Boring Company accepts Dogecoin (DOGE) for Loop rides

The Las Vegas Loop is a network of transit tunnels constructed by Boring Company, which Elon Musk founded in 2016.

Elon Musk’s The Boring Company has reportedly added support for users of the Las Vegas Loop to pay for rides via Dogecoin (DOGE).

The Loop is a network of small tunnels dug by the company Musk founded in 2016, and which targets having 50+ Loop stops. For now, the Boring Company has opened its first stop at the Las Vegas Convention Center and uses human controlled Tesla vehicles that travel at speeds of about 35 mph.

Pay with DOGE at the Las Vegas Loop

A report by CNN says the company revealed plans to accept Dogecoin on the Loop transit system on Friday.

Currently, people can hop onto a Tesla on the Loop and enjoy a free ride. However, the company has indicated plans to introduce charges – $1.50 for single rides and $2.50 for a day pass.

Customers will pay for tickets by scanning a QR code, while those that don’t have DOGE will pay via credit card or US dollars.

Dogecoin and Musk

Tesla and SpaceX CEO Elon Musk is the highest profile supporter of Dogecoin, a cryptocurrency that launched in 2013. The cryptocurrency, which has inspired several others using the Shiba inu dog logo, became very popular in late 2020 and 2021 following Musk’s comments. 

During the bull market, the price of DOGE rose to highs of 73 cents. 

But Musk’s support of the meme coin has seen a class action lawsuit filed in the US alleging the billionaire’s tweets and comments amount to promoting a pyramid scheme.

But Musk recently said he has never asked anyone to purchase cryptocurrencies, vowing at the same time to continue supporting development of the Dogecoin blockchain and ecosystem.

The post Elon Musk’s Boring Company accepts Dogecoin (DOGE) for Loop rides appeared first on CoinJournal.