Cryptocurrency
Bitcoin is close to a two-year low. What awaits it next
![](https://letizo.com/wp-content/uploads/2022/07/are-bitcoin-ethereum-about-to-lead-the-stock-markethigher_62d09192d463b.jpeg)
Experts explain what factors put pressure on cryptocurrencies and when you can expect positive changes in the market
Since the beginning of the year, the capitalization of digital currencies has decreased by 60% — to $934 billion. The “crypto winter” collapsed the price of bitcoin by 70% of the historical maximum of $69,000.
Tokens of meta-vendors and NFT-projects, as well as currencies of DeFi-platforms were hit hardest — coins lost in price from 70% to 85% since the beginning of the year. Cryptocurrencies on exchanges fell the least: their quotes fell by 46%-57%.
Since mid-June, bitcoin rates have been fluctuating in the range of $18,000 — $22,000. Because of the falling quotes, some institutional investors and credit crypto platforms have already faced financial problems, and mining companies are forced to sell all the mined bitcoin to cover operating costs.
Is there potential for bitcoin growth in the near term, or is a true reversal in the market still to come? Experts described the current price dynamics in the cryptocurrency market and told when the turning point may occur.
Bitcoin price dynamics
The current week “pleases” traders with increased volatility. After bitcoin went below $19K on July 13, the panic was very strong.
If you look at the chart of BTC from the point of view of technical analysis, “the price is in a horizontal channel with a width of about $4000. Approximately the same channel was formed in May-June and as a result the price strongly “fell”.
Now there are already a lot of touches in the new channel as the upper and lower edges, so with a high degree of probability, the exit from the channel will occur in the next couple of weeks, the expert suggested. On July 13, the price “pushed back” from the lower boundary; that is, we can hope that the growth will continue to the upper boundary.
There is full synchronization with the index S & P 500, from its movement now directly depends on the dynamics of bitcoin and other top cryptocurrencies. A breakdown of the horizontal channel upwards will open a target to levels around $26k, while a breakdown downwards will open a target of $16k.
Influence of external factors
The most likely negative scenario, which implies the fall of the entire crypto market, and bitcoin — to $15,000 in the next month.
Cryptocurrencies are seen as a tool to hedge inflation risks. But on the other hand, digital assets now correlate strongly with the stock market, and the latter will inevitably show a decline due to high inflation in the U.S., despite all the efforts of the Fed to curb this growth.
At the next meeting of the U.S. Federal Reserve will decide to raise the key rate again. This is already obvious, and in the run-up to the meeting, capital will start to exit high-risk assets.
In August, bitcoin will fall to multi-year lows, but this does not cancel the forecast for the growth of bitcoin in the perspective of 3 years. Bitcoin will return to growth in the autumn.
In the second half of 2023, a new bullish cycle will begin in anticipation of another halving. And bitcoin will update to new all-time highs within 12 months of it — between May 2024 and May 2025.
Intermediate bottom
Soon we expect mostly sideways movement with the risk of another renewal of annual lows for BTC, ETH, and some other capitalized assets.
Such dynamics are unlikely to lead to a significant drop in quotations, and the new lows will allow market participants to enter assets more profitable, the expert explained. He said he expects the prices will recover sharply after the possible decline of BTC up to $17,000 and ETH — up to $900.
Until the end of July, the crypto market will form an intermediate bottom, which will give cryptocurrencies an opportunity to strengthen within 2-3 months; Pershikov said. The current dynamics will remain until the end of the month, while growth in individual assets and the market will begin in August.
Cryptocurrency
Top 10 Solana (SOL) Ecosystem Projects by Development Activity
![](https://letizo.com/wp-content/uploads/2024/09/top-10-solana-sol-ecosystem-projects-by-developmentactivity_66dc47b18afea.jpeg)
TL;DR
- Due to recent growth, Solana and its projects have gained popularity.
- Ecosystem meme coins like Dogewifhat (WIF) and Bonk Inu (BONK) have seen significant declines after a substantial surge earlier this year.
The Unsurprising Leader
Solana and numerous projects built on it have brimming in popularity in 2024. Some factors that could have contributed to this might be SOL’s bull run at the end of 2023 and the beginning of 2024, the growing community, and innovations in the ecosystem.
The crypto analytics platform Santiment recently outlined the top 10 Solana-based projects in terms of development activity in the past 30 days.
Somewhat expected, the first spot belongs to Solana itself, which collected a score of 186.33. It is worth noting that the protocol’s native token – SOL – has been experiencing a downfall since the end of July, plunging by approximately 30% and currently trading at around $127 (per Coingecko’s data).
Wormhole holds the second position with a ratio of 90.5. It acts as a bridge connecting various blockchain networks, such as Solana, Ethereum, BNB Smart Chain, and others. It enables users to transfer digital assets and data across these blockchains without a centralized intermediary.
Pyth Network is third, with a score of 68. It operates as a decentralized oracle network where multiple providers contribute to a collective data feed.
JITO and Neon round up the top 5 list. The other Solana-based projects down the line include Drift, Orca, Helium IOT, Helium Mobile, and Metaplex.
The Missing Ones
It is interesting to note that meme coins, which are part of Solana’s ecosystem, did not make the list. Such tokens, including dogwifhat (WIF), Bonk Inu (BONK), and many more, were among the top-trending topics in the crypto space at the start of the year due to their skyrocketing prices.
However, their progress has stalled as of late. WIF – the biggest Solana-based meme coin in terms of market capitalization – currently trades at around $1.52, representing more than a 70% decline from the ATH registered in April.
BONK (the second-largest) is worth approximately $0.00001666 as of the moment, or 60% less than the peak in May.
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Cryptocurrency
These Altcoins Bleed Out as Bitcoin (BTC) Price Fell by $4K in Hours (Weekend Watch)
![](https://letizo.com/wp-content/uploads/2024/09/these-altcoins-bleed-out-as-bitcoin-btc-price-fell-by-4kin-hours-weekend-watch_66dc47b73b311.jpeg)
Bitcoin’s nosedives continued in the past 24 hours as the asset slumped from an intraday high of $57,000 to under $53,000 within hours.
The altcoins are also in the red, and the total crypto market cap has dumped to $2 trillion for the first time in over a month.
BTC’s Troubles Keep Coming
The primary cryptocurrency lost the coveted $60,000 level last week, and the true downfall followed suit. Aside from a brief attempt to overcome that line on September 3, the bears have been predominantly in control, which culminated yesterday.
Before that, it was rejected a couple of times and marked lower daily highs. A relief rally came on Friday when the US released the job report for August, which showed that there was a slight decline in the unemployment rates.
BTC reacted quickly with a price increase from $55,500 to $57,000. However, that turned out to be a false breakout, and the cryptocurrency headed south immediately after. In a matter of minutes, it plummeted to $54,000 before the bears initiated another leg down that pushed it to a monthly low of $52,700 (on Bitstamp).
Despite recovering to just over $54,000 now, it is still 4% down on the day and more than 8% in the past seven days. Its market cap has plunged to $1.070 trillion, while its dominance over the alts is down to 53.5%.
Alts in Red Yet Again
The bearish scenario repeated once again, and the altcoins are back in red. Ethereum is among the leaders in this adverse trend, having lost over 4% of value. As a result, it now struggles at $2,250. BNB is down by 3%, XRP by 3%, and SOL by 2.5%.
DOGE has dumped the most from the larger-cap alts. The OG meme coin has seen 5% of its value evaporate over the past day and is below $0.1.
Further losses come from the likes of TON, BCH, SHIB, LTC, OKB, XMR, and many others.
The total crypto market cap has declined by another $50 billion and is down to $2 trillion on CG.
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Cryptocurrency
Vitalik Buterin Pledges L2 Tokens to Support Public Goods in the Ethereum Ecosystem
![](https://letizo.com/wp-content/uploads/2024/09/vitalik-buterin-pledges-l2-tokens-to-support-public-goods-inthe-ethereum-ecosystem_66dc47bce1201.jpeg)
Ethereum co-founder Vitalik Buterin has pledged to donate all Layer 2 (L2) tokens he holds to support public goods within the Ethereum ecosystem or broader charitable causes.
This announcement comes a few days after accusations that he had sold millions in Ether (ETH) for personal gain.
Vitalik Buterin Denies Profit Motive
Buterin was quick to respond to the allegations, emphasizing that he has not sold any ETH for personal profit since 2018. Instead, he clarified that any proceeds from his ETH sales have been directed toward projects that contribute to the Ethereum ecosystem or other charitable initiatives.
In a September 5 update, he expanded on his stance, pledging to donate all L2 tokens he holds, including not-yet-liquid assets, to support similar causes.
He wrote, “All proceeds will be donated, again either to support public goods within the Ethereum ecosystem or broader charity (e.g., biomedical R&D). I also do not intend to invest into L2s or other token projects in the foreseeable future.”
He explained that his aim in funding projects is to support initiatives he believes are important, particularly in situations where other parts of the ecosystem may not fully recognize their value.
The Allegations
On August 30, an X user accused him of selling over $2 million worth of ETH shortly after posting a positive update about Ethereum’s future.
Later on, Lookonchain also revealed that Vitalik had transferred 800 ETH, worth around $2 million, to a multi-signature wallet. Shortly after, the wallet swapped 190 ETH for 477,000 USDC.
Further analysis from Lookonchain indicated that on August 9, he had moved an additional 3,000 ETH, valued at over $8 million, to the same multi-sig wallet.
These transfers fueled speculation that the Ethereum co-founder was liquidating his Ether holdings to realize profits.
Buterin had previously disclosed that his entire Ether holdings came from the Ethereum pre-mining period, which allocated 11.9 million ETH (about 10% of the total supply) to early contributors. As one of them, he received 700,000 ETH for his role in the network’s creation.
According to blockchain tracker Arkham Intelligence, his current holdings amount to approximately 240,000 ETH. This is a reduction of around 460,000 ETH from his initial stash.
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