| Hey Cryptonews, here's our curated daily bundle of crypto news. | | Bitcoin notes 4% price plunge amid SEC's ETF decision delay |  | | Bitcoin's recent gains have been relinquished as the cryptocurrency experienced a 4% crash following a surge sparked by Grayscale's legal victory. The current downturn, however, appears to be intricate, with the involvement of significant market players potentially shaping the situation.
The downturn in Bitcoin's value, bringing it to $26,202, marks a retreat to its previously established lower range. Investigation into the driving forces behind this retraction unveils the role of Bitcoin whales, the holders of substantial amounts of the cryptocurrency. These whales exhibited a pattern of activity suggesting their influence in orchestrating a bear trap.
Bullish sentiment escalated throughout the week, accompanied by a surge in open interest and leverage interest. This provided an opening for whales to execute their strategic moves. The concurrent decline in leverage ratio and open interest on August 29 coincided with an announcement from the SEC to delay judgment on various Bitcoin ETF applications. While whales have consistently increased their holdings after significant price dips, signalling gradual re-accumulation, the recent liquidation levels have been notably lower than in previous instances. | | | Learn More | | Ethereum's long-term holders show fatigue despite legal win |  | Ethereum market becomes bearish after mention in the recent ruling ETH long-term holders, however, seem tired as the volume in profit to loss increased
Ethereum's recent price trajectory has cast a shadow over the jubilation stemming from its legal standing in comparison to other cryptocurrencies. Despite the affirmation of Ethereum's commodity status that occurred as a part of a court case on August 30, not all holders were boosted with confidence, as recent on-chain data reflects.
Although Ethereum has recently rebounded to the $1,700 range from a period of trading below it, a section of holders exhibited signs of fatigue. Santiment's data revealed that, at one point, ETH had the highest transaction volume transitioning from profit to loss. Nevertheless, this trend has since moderated, indicating a shift towards profitable transactions and a willingness to sell, even at a loss.
An analysis of Ethereum's Market Value to Realized Value ratio (MVRV) reveals nuanced patterns among different holder classes. The 180-day MVRV currently sits at around -6%, suggesting a loss for holders in that timeframe. On the other hand, the 365-day MVRV exhibits greater stability, indicating profit for holders in this category throughout the year. | | Learn More | | Robinhood to involve DOGE in trading amid stagnant active addresses |  | | DOGE's response to Robinhood's recent support was modest, defying trader expectations, while concerns rose due to the stagnant trend in its active addresses. Over the past three days, DOGE demonstrated a daily increase of over 5%, supported by a 1.5% uptrend on 31 August according to the six-hour timeframe. Although trading near $0.06, retracing some gains from longer intervals, the MACD indicator indicated a bullish divergence despite a drop. The RSI remained below neutrality.
Robinhood's inclusion of DOGE on August 30 enabled storing, sending, and receiving on its platform, fostering in-app swaps on the Ethereum network, extending Bitcoin and Dogecoin support to all users. Yet, while DOGE typically responds to such developments, the trajectory wasn't as pronounced. Examining the performance in 2023, notable price surges had emerged correlating with significant news events. These events suggest that news and social media play a role in driving upward trends for DOGE.
However, despite these movements, DOGE's seven-day active addresses metric remained relatively unchanged, hovering around 254 according to Santiment data, implying limited address activity despite recent price actions. | | Learn More | | SEC extends review period for six Bitcoin ETF applications
|  | This extension means the regulatory body will have until October to make a decision The six applications were from WisdomTree, VanEck, Invesco Galaxy, Bitwise, Valkyrie, and Fidelity
The United States Securities and Exchange Commission (SEC) has chosen to extend the review period for six spot Bitcoin exchange-traded funds (ETFs) applications. This decision, revealed in SEC filings dated 31 August, means that WisdomTree, VanEck, Invesco Galaxy, Bitwise, Valkyrie, and Fidelity's Wise Origin Bitcoin Trust will have their ETF applications under extended scrutiny.
After being published in the Federal Register, the SEC will have an extra 45 days to deliberate on the proposed rule changes for allowing the listing of these investment vehicles. This extension means the regulatory body will have until October to make a decision, whether it's approval, denial, or further delay.
Notably, the SEC's decision to delay its rulings follows a recent surge in speculations that the commission could potentially approve the first-ever spot Bitcoin ETF in the United States. This was fueled by an appellate court's ruling on 29 August, requiring the SEC to reevaluate Grayscale's Bitcoin Trust conversion into an ETF. | | August records $23.4M crypto losses, DeFi remains a target |  | Out of the 21 security incidents, Ethereum and BNB Chain each experienced five and four respectively Coinbase's layer-2 solution, Base, encountered four security breaches shortly after its 9 August launch
As per a 31 August report from blockchain security firm Immunfi, the crypto community saw losses of $23.4 million due to hacks and fraud in the month of August, a substantial drop from July's $320.5 million in losses. It's worth mentioning that all these incidents exclusively targeted decentralized finance (DeFi) protocols, sparing centralized financial entities from harm.
Out of the 21 security incidents reported in August, Ethereum and BNB Chain each experienced five and four respectively. Coinbase's layer-2 solution, Base, encountered four security breaches shortly after its 9 August launch. Among these, the most significant loss was the Exactly protocol hack on 18 August, resulting in the theft of 4,323.6 Ether ($7.2 million) in user deposits through a malicious deposit contract.
Meanwhile on 25 August, Magnate Finance, a lending and borrowing protocol operating on Base, allegedly carried out a fraudulent exit scam, totaling $6.5 million. As per Immunefi's data, users have incurred losses of $1.25 billion in cryptocurrency year-to-date because of hacks and fraudulent activities. | | Binance Australia GM shows optimism about crypto regulation in Australia |  | | Ben Rose, Binance Australia General Manager, expressed strong confidence in Australian regulators' ability to formulate appropriate digital asset regulations. Speaking at the Intersekt Fintech conference in Melbourne, Australia on 31 August, he stated that he believes that government officials are diligently working on crypto policies and expressed optimism about the eventual outcome.
Despite recent adversities, including regulatory scrutiny and banking constraints affecting Binance Australia, Ben Rose remains optimistic that Australian regulators will eventually make the right choices in shaping cryptocurrency regulations, emphasizing his confidence in their decision-making process in the face of ongoing challenges.
Following a recent round table discussion with the Treasury and ASIC, Rose highlighted the positive interaction between the cryptocurrency industry and regulators. He added, "...I'm confident that we'll get there. I just hope it's sooner rather than later." | | IBM offers guidance for successful implementation of digital euro |  | The authors emphasized that simplicity and familiarity are vital for initial adoption IBM also recommended a cautious approach, advocating for a minimal viable product to expedite market entry
IBM has offered insights on ensuring the success of the digital euro, sharing five recommendations for designers collaborating with the European Central Bank (ECB). One of these suggestions, "Building on existing rails," aligns with the European Commission's legislative proposal. The authors emphasized that simplicity and familiarity are vital for initial adoption in the diverse Eurozone payments landscape.
IBM proposed a granular intermediary ecosystem with multiple levels, aiding smaller intermediaries. Additionally, IBM recommends extending offline privacy guarantees from the EC proposal to online activities, aligning privacy measures with existing regulations while avoiding reporting silos for harmonization.
While distributed ledger technology isn't mandatory for a digital euro, the authors acknowledge that blockchain presents significant advantages. Lastly, IBM recommended a cautious approach, advocating for a minimal viable product to expedite market entry and a sandbox environment to manage the complexity of the forthcoming digital euro's operations. | | Top cryptos continue to spiral |
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