BTC Hangs Above Critical Support Level
Over the last couple of weeks, bitcoin (BTC-USD) has been attempting to flip its key resistance levels. This week hasn’t been any different, except for the part that the leading cryptocurrency managed to hold its ground just a few hundred dollars above the $20,000 mark, registering around 9% gains week-over-week.
The price of BTC remained range-bound throughout the week for several reasons. First, there has been a significant dip in mining revenue, leading to huge sell-offs as BTC miners continue to dump their BTC in vast numbers to recoup their mining investments.
BTC also faced pressure as the value of the U.S. dollar strengthened against gold and other risk assets over the U.S. Independence Day long weekend. The ongoing liquidity and bankruptcy problems with prominent organizations such as 3AC, Celsius, and Voyager Digital (VYGVF) have also taken a toll on investor appetite, leading to minimal intra-day trading volumes.
At the same time, Glassnode’s latest report indicates that investors are aggressively withdrawing BTC from exchanges. The report states that 151,000 BTC (worth over $3 billion) left exchanges by the end of June.
Altcoin Rally Holds Firm
The past seven sessions have favored most altcoins. The second-largest cryptocurrency by market capitalization, Ethereum (ETH-USD), made a promising comeback, gaining just over 18.6% this week, mostly triggered by the Ethereum team announcing the successful completion of the second-to-last trial on the Sepolia testnet.
This brings Ethereum another step closer to “The Merge,” where it will fully transition into a proof-of-stake (PoS) network.
Among the top-10 altcoins by market capitalization, BNB and SOL stood out, climbing about 13% and 19%, respectively. The value of BNB jumped as the Binance team announced several upcoming events to mark its 5th anniversary, including zero fees on BTC transactions, NFT giveaways, and much more.
On top of that, Binance’s BNB Beacon Chain has transitioned into a fully open-source platform, opening more opportunities for developers and, in kind, helping the value of BNB appreciate.
Following weeks of massive dips, Solana (SOL) has made an impressive comeback this week. The network’s growing popularity among DeFi and NFT communities who are abandoning Ethereum due to its problems is one of the key reasons behind the ongoing rally of SOL.
While the recent flash loan exploit on Solana’s concentrated liquidity protocol Crema Finance impacted SOL’s upward rally, the situation was resolved when the hacker returned more than 90% of the funds.
That said, one of the biggest gainers of the week was Avalanche (AVAX). The value of AVAX jumped 23% over the past seven sessions as Avalanche’s subnets continue gaining traction among GameFi developers and projects.
The recent launch of Avalanche’s free and non-custodial browser extension wallet, Core, which allows users to connect to the Web3 realm seamlessly and easily, has also helped the AVAX token break out of its bearish phase.
A Few Coins Remain in the Red Zone
The broader market has recovered from some of its losses this week, except for a handful of small-cap tokens. Litecoin (LTC) has remained flat. The value of LTC dropped below $50 following a significant liquidation last weekend before rebounding and retaking the key psychological level.
As LTC failed to maintain its support levels multiple times, investors are indulging in massive sell-offs, further pushing the value of LTC below comfort levels.
Aside from Litecoin, exchange tokens like Huobi Token (HT), KuCoin Token (KCS), and 1inch Network (1INCH) were the source of significant losses, with 1INCH shedding the most – around 7% of its previous value.
Voyager Digital Files Bankruptcy & MiCA Framework Arrives
After weeks of rumors, halting withdrawals, and the ensuing drama, crypto exchange Voyager Digital has filed bankruptcy proceedings under Chapter 11 in New York’s Southern District Court. The bankruptcy filing indicates that Voyager owes anything between $1 billion to $10 billion in digital assets to more than 100,000 investors. Voyager Digital joins the list of failing CeFi firms that are facing the heat due to their exposure to Three Arrows Capital (3AC).
Following the Terra catastrophe and rising concern about investor protection, representatives of the 27 member states of the European Union (EU) have finally agreed to implement a broad regulatory framework, titled MiCA (Markets in Crypto Assets), to regulate the expanding crypto market and crypto asset service providers (CSPs) across the EU.
Finally, Elon Musk’s tunnel construction company, The Boring Company (TBC), has started accepting DOGE as payment from customers for rides on its Las Vegas transit route. DOGE was added to the accepted list on July 1, 2022 – a day after Elon Musk launched TBC’s new Loop station at the Las Vegas Convention Center.
