Is Meme Coin FOMO Back in the Market? Market Analysis

Cryptocurrency Markets Gave You a Major Case of FUD? You are not the only one.

One minute we’re dreaming, the next minute we’re sliding down.

This meme sums up the whole week in crypto:

Inflation data came out better than expected, but Bitcoin isn’t exactly booming.

And to make sense of it all, we’ll be breaking down today’s top crypto news stories and decoding this market madness in the analysis section.

Full summary:

• US Moves $600 Million in Bitcoin. Are they trying to sell it now? 🕵️‍♂️

• Wall Street whales are accumulating cheap Bitcoin ETFs. But why doesn’t this institutional investment drive up prices? 🤔

• TON price goes parabolic, up 19.2%. But what is driving TON prices up in this fall? 🚀

• Coinbase Brings Wrapped Bitcoin to Base. But what is the problem? 💡

• Solana has another viral meme. But what causes the pump? 🎭

And finally, a little market analysis for you!

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Let’s dive in!

Silk Road’s Cryptocurrency Stash Is on the Move

The US government has just transferred $600 million worth of Bitcoin, seized from the infamous dark web marketplace Silk Road, to a Coinbase Prime wallet.

We are talking about 10,000 BTC here. Arkham Intelligence has revealed the details of this digital money transfer.

But here’s the million dollar question: Will they cash in or hold on to their assets?

But do we have a statement or announcement from the government itself? Do they have the right to sell so many cryptocurrencies? Read the full article!

Fear of Missing Out on Cryptocurrencies on Wall Street

And even Morgan Stanley has been secretly hoarding sats.

The Wall Street giant just revealed a $188 million stake in BlackRock’s iShares Bitcoin Trust ETF.

This represents more than 5.5 million shares as of June 30.

The company is also dabbling in other crypto products. It has smaller stakes in Valkyrie, Fidelity, Bitcoin Depot, Bitwise, Invesco Galaxy and ProShares Bitcoin Funds.

And they’re not the only ones getting in on this crypto buying spree. Goldman Sachs holds $238 million in IBIT and other ETFs. Even state pension funds are getting in on the action. Wisconsin and Michigan? Yes, they’re now indirect holders of Bitcoin.

But the real whale in the room? Millennium Management. They have $2 billion spread across five crypto ETFs.

But why doesn’t this institutional investment drive up prices? Read the full article!

And it’s time for TON!

Toncoin (TON) jumped 19.2% last week, reaching highs we haven’t seen in a month.

The story continues

What’s behind this epic race? Let’s decipher it.

First up, Binance just gave TON the VIP treatment. They added it to their Launchpool, allowing users to stake BNB and FDUSD to earn TON tokens.

But what triggered Binance’s confidence in TON? And what other factors play a role in this price rise? Read the full article!

Coinbase is also making big progress with Bitcoin

Coinbase is set to launch cbBTC, a wrapped version of Bitcoin, on its Base network. Details are still under wraps, but it could be a game-changer for tokenized assets.

Why is this so important?

Demand for Bitcoin on Ethereum-compatible chains is booming. Coinbase’s entry into this pool could seriously shake things up.

Remember cbETH, their wrapped Ethereum token? Launched in August 2022, it already has a circulating supply of around 210,000.

Jesse Pollak, the mastermind behind Base, talks about building a “massive bitcoin economy” on Base.

But what is the real problem? How can this help Bitcoin itself? Read the full article!

Another Moons meme coin

Solana’s latest meme currency sensation, Gigachad (GIGA), is causing FOMO.

The coin jumped 15% after receiving the green light from none other than Ernest Khalimov, the face behind the iconic gigachad meme.

And if that wasn’t enough, bodybuilding legend Mike “Titan” O’Hearn has also jumped on the GIGA bandwagon.

But GIGA isn’t just about memes. The team behind the project is promoting a sports brand, Giga Fitness, alongside cryptocurrency.

The sponsorship train doesn’t stop with Khalimov. UFC fighter Paulo Costa and bodybuilder Mike O’Hearn have also shown their support for GIGA.

So, is this meme currency backed by legitimate celebrities? What do analysts think? Read the full article!

And a quick analysis…

Bitcoin and Ethereum prices are moving sideways, but key indicators suggest we may be on the verge of a major move.

Let’s start with the elephant in the room: inflation.

The latest CPI and PPI data came in lower than expected, with July CPI inflation falling to 2.9% and PPI inflation to 2.2%.

This trend increases the likelihood of a Fed rate cut in the near future.

We saw a similar situation happen in early 2023, when inflation started to decline.

This period preceded a sharp rise in cryptocurrency prices as investors anticipated monetary easing.

It should be noted, however, that if inflation falls too quickly, it could signal risks of recession.

Speaking of recession risks, jobs data has become increasingly important. The jobs report we saw a few weeks ago threw a wrench into expectations of an imminent economic slowdown. This back-and-forth between inflation and jobs data is keeping markets on edge.

What do crypto-specific indicators suggest?

Now let’s focus on crypto-specific indicators.

The MVRV Z-Score, another key indicator, is hovering around 1.65. Based on past experience, when this indicator is at a historically high level, the probability of a Bitcoin price downtrend increases, implying that we are not yet in overheating territory.

Source: Coinglass

Chain indicators paint a picture of patient retention

A deep dive into Glassnode’s on-chain metrics reveals some interesting trends underlying Bitcoin’s recent price movements.

The Accumulation Trend Score reached its maximum value of 1.0, indicating strong buying behavior across the board, especially from larger portfolios.

Source: Glassnode

This is in line with data showing that long-term holders (LTH) added 374,000 BTC to their holdings over the past three months, as shown above.

Source: Glassnode

Despite recent price volatility, Bitcoin has managed to stay above the Active Investor Cost Basis, which is the average purchase price of active cryptocurrencies. This suggests that investors remain generally optimistic about future price movements.

Interestingly, the long-term holders’ risk ratio of selling is relatively low, indicating that long-term holders are not rushing to sell at current prices.

Collectively, these indicators suggest a pattern of patient, conviction-driven holding behavior. Despite the recent market turmoil, long-term investors appear to be accumulating more bitcoin and showing little interest in selling at current prices.

This could potentially pave the way for an upward price movement if market sentiment improves and buying pressure increases in the spot markets.

Please remember that while these indicators provide valuable information, they are not guarantees of future performance. Always consider multiple factors and conduct your own research when making investment decisions.