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Cryptocurrency

BTC: it’s not over yet, the surrender will continue

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Bitcoin (BTC) has rolled back below $20,000 again as the capitulation in the market continues. The bottom of this bearish cycle is probably still a few months away.

Why BTC rolled back under $20,000 again

Bitcoin once again failed to hold above the key $20,000 psychological mark after the weekend rally and is trading down intraday as of this writing. There are still not enough buyers in the market to support and build on BTC’s growth.

Even long-term holders are now getting rid of BTC, according to a recent onchain survey by Glassnode analysts.

According to Glassnode, capitulation in the market is still ongoing amid ongoing extreme financial stress. Experts believe that before the market does find a steady bottom, pressure will persist and further declines in BTC are possible.

“While many signals point to the proximity of a bottom, the market still needs time and new pain to form a stable base. The woes of bitcoin investors are not over yet.”

Determining exactly when the market has bottomed out is a challenge even for a professional trader. Glassnode points out that miners continue to sell coins, a trend that has persisted over the past couple of months.  

Meanwhile, in the previous bear market, the capitulation of miners lasted about four months. Therefore, it is likely that the capitulation will continue in Q3.

Experts also write that in the 2018/19 bear market, the drawdown lasted for about 15 months, and ultimately the scale of the BTC collapse from highs to lows was 84%.

Right now, the similar size of bitcoin’s drawdown is just over 71%. If we apply the scenario of the past to the current cycle, we should expect BTC to touch a bottom around $12,000 – $13,000 and then remain sideways until Q1 2023.

Glassnode adds:

“One of the major outcomes of a prolonged bear market is a redistribution of wealth among the remaining participants.”

Capitulation catalysts

This month, we will be treated to a deluge of new macroeconomic data that may not be cheerful for investors. As a result, they may become catalysts for the final washout of positions on the crypto market.

On July 13, the US will publish a Consumer Price Index (CPI). According to the forecasts, it may slightly increase in June compared to May and amount to 8.7%.

This may put further pressure on the Fed, forcing it to tighten monetary policy more actively. Rising lending interest rates are traditionally a negative factor for risky assets, which now include cryptocurrencies.

That said, a number of analysts believe that the Fed will not be able to continue tightening in 2023. This could mean that despite the painful rest of 2022, the crypto market will soon find its feet. In this case, we can expect a potential recovery of cryptocurrencies, including BTC, next year.

“This indicates that whilst many bottom formation signals are in place, the market still requires an element of duration and time pain to establish a resilient bottom. Bitcoin investors are not out of the woods yet,” the analysts state.

Cryptocurrency

Arthur Hayes Is Selling: Here Are the Altcoins He’s Ditching

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The cryptocurrency market reached new heights in July as the total cap exceeded $4 trillion for the first time ever, led by bitcoin’s new peak above $123,000 and several altcoins’ rallies to ATHs, such as XRP and BNB.

The past few days, though, have gone in the opposite direction, with many altcoins charting double-digit price declines, while BTC plunged to a three-week low of under $113,000.

During these turbulent times of uncertainty, perhaps prompted by Trump’s latest tariffs and the movement of US nuclear submarines close to strategic Russian locations, prominent industry names, such as Arthur Hayes, have started to sell off. Here’s which altcoins the BitMEX co-founder sold in the past 24 hours.

ETH, ENA, PEPE Being Sold

As the data shared by the analytics resource Lookonchain points out, Hayes has used one of his known addresses to dispose of over $8 million worth of ETH, $4.6 million in ENA, and $414,700 worth of the third-largest meme coin by market cap – PEPE.

Later, the Maelstrom exec clarified that the reason for his sales is mostly related to Trump’s tariffs, many of which are set to be implemented starting from August 1. He believes BTC and ETH will retrace, as the former would retest the $100,000 resistance, while the latter will head toward $3,000.

Hayes is far from the only larger crypto investor turning to a sell-off strategy amid this market uncertainty. Lookonchain identified an unknown whale that had deposited over $90 million worth of ETH to several exchanges within a span of just two days.

Not SharpLink, Though

While some whales and Hayes are rushing to sell ETH, the second-largest ether holder, SharpLink, has taken the opportunity to increase its impressive stash.

After accumulating another 14,933 ETH, the company now owns over $1.6 billion worth of Ethereum’s underlying asset (464,209 ETH), according to Lookonchain. Data from CoinGecko and strategicethreserve shows that SharpLink’s Ethereum fortune is second only to Bitmine’s 566,766 ETH.

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XRP, TON Defy Market Correction as BTC, Alts Continue to Melt Down: Weekend Watch

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Bitcoin’s adverse price movements that started on Thursday continued in the past 24 hours, with the asset sliding to a new multi-week low of under $113,000.

With multiple altcoins in the red as well, including a new all-time low for Pi, it’s no wonder that the total crypto market cap has dumped by nearly $250 billion in a few days.

BTC Keeps Dropping

The primary cryptocurrency experienced a brief retracement at the end of the previous business week when it dipped from $119,000 to under $115,000 amid substantial sell-offs by Galaxy Digital on behalf of a client. However, once the sale was completed, BTC recovered most losses and even headed toward $120,000 after the weekend.

The bears were quick to intercept the move and didn’t allow another price jump. Bitcoin remained calm until Wednesday, when the latest FOMC meeting was scheduled to take place. Despite the positive US GDP data for Q2 and Trump’s continued pleas for rate reduction, Powell and company left them unchanged for a fifth consecutive time.

BTC reacted with an immediate price slip to under $116,000 but bounced off and challenged $119,000 on Thursday morning. However, more Trump-induced volatility followed amid new tariff developments and nuclear sub movements, and bitcoin plunged below $113,000 on Friday evening for the first time since July 10.

It has recovered around a grand since then, but it’s still 1% in the red daily and 3% down weekly. Its market cap is down to $2.260 trillion, while its dominance stands tall at 60%.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

XRP Fares Well

Most larger-cap alts have followed BTC on the way south, with even bigger price declines. ETH has slipped below $3,500 after a 4% daily drop, SOL is below $165, while DOGE, HYPE, LINNK, BCH, and HBAR have retraced by around 3-4%.

Pi Network’s native token dumped to another all-time low earlier today, while ENA has plunged by 7%. There are a few exceptions from the larger-cap alts, including XRP and LTC, which are slightly in the green. TON has risen by over 3.5% to almost $3.6.

The total crypto market cap has dumped to $3.750 trillion on CG. This means that the metric has lost roughly $250 billion since Thursday’s peak.

Cryptocurrency Market Overview. Source: QuantifyCrypto
Cryptocurrency Market Overview. Source: QuantifyCrypto
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

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Cryptocurrency

Coinbase Tanks 11% Pre-Market After $1.5B Q2 Revenue Miss

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Coinbase shares fell sharply after the company reported second-quarter earnings that missed expectations. Total revenue for the quarter came in at $1.5 billion, representing a 26% decline from the previous quarter.

The shortfall was largely driven by weaker-than-expected transaction revenue, which fell 39% quarter-over-quarter to $764 million.

Missing Expectations

In the official release, Coinbase revealed that its subscription and services revenue also declined 6% to $656 million. Despite efforts to reduce variable costs, operating expenses climbed 15% to $1.5 billion. Coinbase attributed this largely to the $307 million hit related to the data breach disclosed in May.

The crypto exchange recorded a net income of $1.4 billion, but this figure included $1.5 billion in pre-tax unrealized gains from strategic investments, including in Circle, as well as a $362 million pre-tax gain from its crypto investment portfolio. On an adjusted basis, net income stood at just $33 million, with adjusted EBITDA reaching $512 million.

Coinbase’s trading activity also underperformed the broader crypto spot market, as global and US crypto spot volumes declined 31% and 32% respectively. Meanwhile, its total trading volume fell 40% to $237 billion, and the consumer segment witnessed a 45% drop to $43 billion.

Consumer transaction revenue plunged 41% to $650 million, as volume shifted toward Simple trades amid low volatility. Institutional transaction revenue also saw a similar pattern, down 38% in both volume and revenue.

While Base Chain activity grew, other transaction revenue dropped 21% as average revenue per transaction declined.

As of the close on the previous trading day, Coinbase (COIN) shares were priced at $377.76, up slightly by $0.28. However, pre-market trading shows a sharp decline, with the stock down $42.30 (-11.20%) to $335.46. This steep drop suggests a strong negative reaction from investors, likely in response to recent earnings results.

Despite grappling with declining revenues and rising costs, Coinbase is doubling down on product innovation.

“Everything App”

Earlier this month, Coinbase rebranded its Wallet as the Base app, launching a crypto-focused “everything app” that merges trading, social media, USDC payments, mini-apps, and tokenized posts.

Announced at its “A New Day One” conference, the app runs on Coinbase’s Ethereum Layer 2 network and integrates Farcaster for social feeds, Zora for post tokenization, and encrypted XMTP chat. Users can earn from tips, interact with AI agents, and make one-tap payments.

The platform also introduced Base Pay for Shopify merchants and plans 1% USDC cashback in the US. The app is in beta, while a full public release and developer tools are expected soon.

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