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News | Crypto Converter | Crypto Calculators |
Bitcoin's Funding Rates hint at a local bottom: Is a reversal on the horizon? |
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Key points: |
Negative Funding Rates are emerging across major exchanges, historically aligning with market bottoms. A potential short squeeze could push BTC past key resistance, but macroeconomic conditions remain a factor.
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News: Bitcoin Funding Rates flash a key signal - Bitcoin's [BTC] Funding Rate is approaching a pivotal level, with growing signs of negative Funding Rates across major exchanges. While the Aggregated Funding Rate remains positive, these localized negative rates have sparked speculation about whether BTC is forming a local price bottom. |
Historically, instances of negative Funding Rates have coincided with market reversals. Similar patterns in mid-2022 and early 2023 led to significant price recoveries. The data suggests that if bearish sentiment persists, it could trigger a short squeeze—where over-leveraged short positions get liquidated, fueling an upward move. |
What negative Funding Rates mean for BTC's price - The emergence of negative rates signals rising short interest, with traders paying premiums to hold short positions. This reflects cautious sentiment but also creates conditions for a rapid price rebound if selling pressure eases. |
At press time, Bitcoin is consolidating around $98,288, struggling to break the psychological resistance at $100,000. Its RSI of 50.93 indicates neutral momentum, while the On-Balance-Volume [OBV] remains weak at -90.38K, showing a lack of strong accumulation. |
What's next? Breakout or extended consolidation? - Bitcoin's current price structure suggests two potential scenarios: |
Bullish case: A short squeeze forces liquidation of excessive short positions, driving BTC above $100K. Bearish case: Persistent negative funding reflects deeper skepticism, leading to prolonged sideways action or a correction toward $92K-$94K.
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While Funding Rate shifts suggest BTC is near a local bottom, broader market conditions—such as ETF inflows and macroeconomic trends—will ultimately determine Bitcoin's next move. |
Trump's crypto influence: Australia divided over his Impact on digital assets |
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Key points: |
31% of Australians see Trump as good for crypto, while 60% remain neutral. Crypto investors are more optimistic, with 50% viewing Trump's policies favorably. Regulatory uncertainty remains a key challenge for Australia's crypto market.
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News - Donald Trump's presidency has reignited optimism in the crypto markets, with Bitcoin surging over 40% since his election and hitting an all-time high of $108,786 on Inauguration Day. However, a new survey by the Independent Reserve reveals that Australians have mixed views on Trump's impact on the sector. |
Of the 2,100 adults surveyed, only 31% believe Trump's leadership will benefit crypto, while 8% view him as a negative force. The majority—around 60%—are neutral, suggesting that the broader Australian public remains uncertain about how Trump's policies will shape the global crypto landscape. |
Crypto investors are more pro-Trump - The survey found a clear divide between crypto investors and non-investors: |
50% of crypto holders believe Trump is good for the industry. Only 20% of non-investors share the same sentiment. The more invested someone is, the more positive their view—those allocating over $6,400 [AU$10,000] per month into crypto had zero negative views on Trump's impact.
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This aligns with broader trends, as a separate poll by YouGov found that 59% of Australian crypto holders are more likely to vote for a pro-crypto candidate in the upcoming federal election. |
Regulatory uncertainty remains a hurdle - Despite growing enthusiasm among investors, regulatory clarity remains a challenge for Australia's crypto sector. |
Nearly 20% of respondents reported that their banks had blocked or delayed crypto-related transactions. The Labor government concluded a crypto regulation consultation in late 2023 but has yet to draft formal legislation. The opposition center-right Coalition has vowed to implement pro-crypto regulations if elected in May 2024.
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With Australia's crypto adoption rate peaking, the industry is at a crossroads. Will clearer regulations unlock further growth, or will restrictive policies curb momentum? As the election nears, crypto's role in shaping financial policy is more relevant than ever. |
Ethereum's gas fees plummet to 4-year lows: What's behind the drop? |
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Key points: |
Gas fees drop 70% – Ethereum's daily fees fall from $23 million to $7.5 million. L2 adoption skyrockets – Offloading transactions to Arbitrum, Optimism, and Base has slashed costs. Mainnet activity slows – Fewer transactions and declining DEX volumes reduce congestion.
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News - Ethereum [ETH] users are witnessing historic lows in gas fees as average transaction costs crash by 70%, reaching their lowest levels since 2020. According to IntoTheBlock, fees dropped from $23 million daily to just $7.5 million, with gas prices falling to an average of 5 gwei [$0.80 per transaction]—a stark contrast from 2024's peak of $20 per transaction. |
This dramatic decline stems from Layer-2 [L2] adoption and reduced mainnet activity, shifting Ethereum's role from a high-fee transaction hub to a more cost-efficient settlement layer. |
L2 scaling takes center stage - Ethereum's L2 solutions—including Arbitrum, Optimism, and Base—are absorbing a significant share of network activity, processing over 1.5 million daily transactions, nearly double the volume from a year ago. |
Arbitrum's fees: Down to $0.15 from $2 pre-Dencun upgrade. Dencun upgrade impact: "Blobs" reduce L2 data costs by 90%, making transactions faster and cheaper. Ethereum mainnet reliance: L2s still post data to Ethereum, but more efficiently, lowering congestion.
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Declining mainnet demand - Ethereum's mainnet saw daily transactions decline from 1.2 million [Jan 2024] to 900,000 [Feb 2025], with DEX volumes shrinking to $2.62 billion daily from a $5 billion peak. |
Memecoin & NFT slowdown: Hype-driven activity has cooled, reducing demand for block space. ETH issuance vs. burn: 197,000 more ETH minted than burned, easing gas price pressure.
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What's next for Ethereum? - While cheaper transactions could fuel wider adoption, Ethereum faces liquidity fragmentation as more activity moves to L2s like Base, which already boasts $8 billion in Total Value Locked [TVL]. |
Ethereum's mainnet appears poised to evolve into a security-focused settlement layer, while L2s handle most transaction activity. But as L2s grow, will Ethereum's core infrastructure remain as dominant in the years to come? |
Ross Ulbricht rallies for Roger Ver's freedom: Will Trump intervene? |
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Key points: |
Ulbricht speaks out – Recently pardoned Silk Road founder Ross Ulbricht calls for clemency for Roger Ver. Tax evasion case – US prosecutors allege Ver underreported $240M in Bitcoin sales, leading to a $48M tax shortfall. Facing 109 years? – Ver is fighting extradition from Spain, with a potential century-long sentence in the US.
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News - Ross Ulbricht, the once-imprisoned Silk Road creator, is now advocating for Bitcoin evangelist Roger Ver, who faces serious tax evasion charges in the US. In a 20th February post on X [formerly Twitter], Ulbricht emphasized that no one should spend life in prison over taxes, urging that Ver should be allowed to pay any owed amount and move on. |
"Roger Ver was there for me when I was down and needed help. Now Roger needs our support," Ulbricht wrote. |
The case against Roger Ver - Ver, widely known as "Bitcoin Jesus" for his early BTC advocacy, was arrested in Spain in April 2023. US authorities claim he fraudulently reported his exit tax after renouncing US citizenship in 2014. The Department of Justice [DOJ] alleges he: |
Failed to report capital gains on 131,000 BTC [worth $240M at the time of sale]. Underreported the value of two companies while exiting the US tax system. Left a $48M tax gap, leading to charges of tax evasion, fraud, and filing false returns.
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If extradited, Ver faces up to 109 years in prison—a sentence his supporters argue is disproportionate. |
Ver's response & plea to Trump - Ver has denied the allegations, citing limited Bitcoin liquidity in 2014 as a barrier to proper tax calculations. In December, he filed a motion to dismiss the case, arguing that US exit tax laws are unconstitutional. |
In a January 26 video, Ver appealed directly to Donald Trump, saying, "Only your commitment to justice can save me." |
Trump's role in crypto pardons - Trump's history of crypto-related clemency adds weight to Ver's plea. The former president pardoned Ulbricht on January 21, fulfilling a campaign promise that resonated with the crypto community. Given Ver's vocal stance in the industry, will Trump intervene once again? |
For now, Ver remains in Spain, fighting extradition—but with Ulbricht and others rallying behind him, his fate may soon be decided on a much larger stage. |
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More stories from the crypto ecosystem |
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Crypto scams uncovered |
Norwegian authorities have charged four men for orchestrating a massive cryptocurrency fraud scheme that amassed over 900 million kroner [€77.3 million], with more than 700 million kroner [€60 million] laundered through a Norwegian law firm and transferred to Asian accounts. Argentinian President Javier Milei recommended the little-known crypto coin $LIBRA late on Friday in a post on X, but later deleted the post and denied having any link to the cryptocurrency, However, it was too late as eight crypto wallets withdrew roughly $99 million worth of tokens from the $LIBRA token's so-called liquidity pool while the token crashed. Estonian nationals Sergei Potapenko and Ivan Turõgin pleaded guilty to orchestrating a $577 million cryptocurrency fraud scheme through their company HashFlare. They falsely claimed between 2015 and 2019 that they were operating a large-scale crypto mining operation, fabricating data on customer dashboards.
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Top 3 coins of the day |
Virtuals Protocol (VIRTUAL) |
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Key points: |
At press time, VIRTUAL was trading at $1.27, up 11.17% in the last 24 hours. The token is attempting a recovery after a prolonged downtrend.
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What you should know: |
VIRTUAL has been trading below the 50-day and 200-day MAs, indicating an overall bearish trend. However, the recent price rebound suggests a potential shift in momentum. The Parabolic SAR dots flipped below the price, signaling a possible bullish reversal. Additionally, the Accumulation/Distribution [A/D] Line remains negative at -66.71M, suggesting weak demand despite the recent gains. Immediate resistance is at $1.42, aligning with the 50-day MA, while support lies at $1.09. A breakout above $1.42 could validate a stronger reversal, whereas failure to sustain momentum might lead to a retest of support. Traders should monitor volume changes for confirmation. |
Sonic (S) |
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Key points: |
At press time, SONIC was trading at $0.88, down 5.55% in the last 24 hours. The asset has experienced a strong rally but shows signs of overextension.
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What you should know: |
SONIC's recent surge pushed its price above the 50-day and 200-day MAs, reinforcing bullish momentum. However, the Bollinger Bands are significantly widening, with the price near the upper band, indicating heightened volatility and potential overbought conditions. The RSI stood at 77.64, suggesting SONIC is in the overbought zone, increasing the likelihood of a short-term correction. Immediate support is at $0.75, while resistance is seen near $0.95. A break above resistance could lead to further gains, but if selling pressure increases, SONIC may retrace toward the midline of the Bollinger Bands at $0.67. Traders should watch for volume trends and RSI cooling for confirmation. |
XDC Network (XDC) |
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Key points: |
At press time, XDC was trading at $0.088, down 1.21% in the last 24 hours. The price remains in a consolidation phase following a breakout from a falling wedge.
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What you should know: |
XDC previously broke out from a falling wedge pattern, leading to a rally before entering a corrective phase. The price is now trading above the 200-day MA, suggesting long-term support, while the 50-day MA acts as near-term resistance. Moreover, the Directional Movement Index [DMI] shows a weak trend, with the ADX at 19.49, indicating consolidation. The +DI [13.32] and -DI [21.74] suggest bearish pressure, though a reversal remains possible. Immediate resistance is near $0.10, aligning with the 50-day MA, while support lies at $0.085. A move above resistance could signal renewed bullish momentum, while a drop below support may extend the correction. |
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