Experts at 10x Research predict Bitcoin is set to fall below $57,000 from its current level of over $60,000 on July 4.
They believe this sharp decline may just be the beginning, potentially dropping further to $50,000. This marks a significant shift in market sentiment, attributed to a decrease in buy flows and an acceleration in sell flows.
Markus Thielen, an analyst at 10x Research, commented on the situation:
“Our data from early June already hinted at an overbought market ripe for correction.”
The sudden 5.44% fall in Bitcoin’s price has significantly impacted investor sentiment and market liquidity, with Bitcoin’s market capitalization now at $1.1 billion and a 57% increase in trading volume.
The breaking of the $60,000 benchmark is critical for Bitcoin miners and spot Bitcoin ETF buyers.
According to the 10x Research report, this price decline “could accelerate as support gets broken and sellers scramble to find liquidity.”
READ MORE: Bitcoin Drops Below $60,000 Amid Potential $9 Billion Mt. Gox Payout and Whale Activity
This sell-off coincides with the anticipated Mt. Gox repayments of $8.5 billion worth of BTC, which were expected to begin in July.
The 10x Research report noted that after breaking the $60,000 support, “only ill-informed traders are willing to buy here.”
The report maintains a cautious outlook for Bitcoin’s price, advising traders to prioritize risk management in anticipation of continued volatility. Thielen emphasized:
“We warned that this was not the time to be complacent.”
Additionally, a recent analysis from IT Tech indicates the downward trend is due to long-term holders cashing in on substantial profits.
On July 3, the spent output profit ratio (SOPR) from long-term holders exceeded a value of 10, meaning BTC was sold for at least 10 times the initial purchase price.
According to this analysis, long-term BTC holders, who typically retain their holdings for five to seven years, have contributed to the increased selling pressure in the market.
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The Securities and Exchange Commission (SEC) has requested a judge dismiss a lawsuit from an American apparel company aiming to protect itself from possible regulatory actions related to a past airdrop.
On July 3, the SEC filed to dismiss a lawsuit from Beba and the DeFi Education Fund (DEF) submitted on March 25.
The suit asked a Waco District Court judge to declare that Beba’s token giveaway was not a security.
The SEC contends the lawsuit is “premature and premised on a phantom” policy.
Beba’s lawsuit alleged the SEC would classify BEBA tokens as securities and initiate legal action, citing that the SEC “has adopted a de facto rule, without notice or comment, that the ‘vast majority’ of digital assets ‘are securities,’” referencing a 2022 statement from Chair Gary Gensler.
In its motion to dismiss, the SEC asserted the lawsuit was “premature and is premised on a phantom, a supposed policy that the Commission never adopted and does not actually exist.”
The SEC highlighted that Beba and DEF did not cite “a rule, order, or other Commission action that reflects the promulgation of the supposed policy.”
Furthermore, the SEC noted the complaint did not demonstrate that regulatory action against Beba was “imminent or threatened” or that the SEC had investigated the company.
“In effect, plaintiffs ask this Court to adjudicate the legality of a policy that does not exist and to block potential future enforcement action that may never occur.”
The SEC has pursued multiple crypto companies for alleged violations of U.S. securities laws, claiming many cryptocurrencies are unregistered securities.
Beba and DEF argued in their lawsuit that this violated the Administrative Procedure Act (APA) as the SEC avoided the rulemaking process.
However, the SEC countered that an unwritten policy or the threat of enforcement does not constitute a rule under the APA’s definition.
The SEC added that it retains immunity from lawsuits unless it waives that right through actions like rulemaking, and Beba and DEF’s claims do not prove the SEC waived its immunity by forming a stance on crypto.
“The Commission acts through a majority vote of a quorum of its five Commissioners,” the SEC explained.
“The statement of a single Commissioner cannot represent the adoption or existence of a Commission policy, and a Commissioner’s speech is not agency action.”
Cointelegraph reached out to Beba and the DeFi Education Fund for comments but did not receive a response by publication time.
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Paxos International, a blockchain and tokenization platform, has achieved full regulatory approval from the Monetary Authority of Singapore (MAS).
Paxos’ Singapore branch, the issuer of the gold-backed stablecoin Pax Gold (PAXG), now has authorization to provide digital payment token services as a Major Payments Institution.
This regulatory green light allows Paxos to launch a stablecoin in alignment with MAS’ forthcoming regulatory framework.
This approval signifies Paxos’ entry into its third international market, following the United States and the United Arab Emirates, where Paxos-affiliated entities are permitted to issue stablecoins.
This milestone was highlighted in a July 1 announcement.
Walter Hessert, head of strategy at Paxos, emphasized the importance of this approval for their global stablecoin offerings: “Stablecoins issued in accordance with standards set by a regulator like MAS — known for its rigorous regulatory standards — represent a significant step toward democratizing access to commerce and financial services.”
In a related development, DBS, Southeast Asia’s largest bank by assets under management, will serve as Paxos’ primary banking partner.
According to the announcement, DBS will handle cash management and custody of the stablecoin reserves.
READ MORE: Dogecoin’s Surge in Trading Volume Sparks Bullish Momentum in Crypto Sphere
Evy Theunis, head of digital assets at DBS Bank, underscored the importance of trust and security in stablecoin adoption: “Stablecoin issuers will find that our solutions will help them meet the robust standards regulators and customers expect from them.
This partnership further expands DBS’ wide-ranging involvement across the digital asset ecosystem.”
This regulatory approval in Singapore marks another significant step in Paxos’ global expansion efforts. Earlier, in June, Paxos announced the launch of an interest-bearing stablecoin called the Lift Dollar (USDL).
This stablecoin, regulated by the Abu Dhabi Global Market (ADGM), will pay overnight yield on the interest earned from the reserves backing it.
Based in New York, Paxos also mints PayPal USD, Pax Dollar (USDP), and Pax Gold (PAXG) under the supervision of the New York Department of Financial Services (NYDFS).
This recent regulatory success in Singapore demonstrates Paxos’ commitment to expanding its regulated stablecoin offerings worldwide, further establishing its presence in key financial markets.
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Dogecoin has experienced a notable surge in trading volume, marking a potential shift in sentiment within the crypto market amid recent bearish trends.
Over the past 24 hours, Dogecoin (DOGE) has seen its trading volume spike by an impressive 38.13%, reaching $659.84 billion.
This increase comes at a pivotal moment, as the broader crypto market has been grappling with bearish signals, hinting at a possible reversal.
Despite a 23.90% price decline over the last month, Dogecoin’s recent uptick in trading activity is seen as a positive development.
Currently valued at $0.1271, DOGE has risen by 3.34% in the past day, indicating growing interest among traders and potential for further gains.
The resurgence of Dogecoin is further supported by a 7.25% increase in its Open Interest (OI), which now stands at $643.30 million.
This rise in OI, particularly evident on major platforms such as Bybit, Binance, and OKX, reflects renewed strategic positioning by traders and underscores a strengthening bullish sentiment.
As a leader in the meme coin sector, which includes tokens like Shiba Inu (SHIB) and Pepe (PEPE), Dogecoin’s performance holds significant implications.
READ MORE: Spot Bitcoin ETFs See $31M Inflows, Reversing Seven-Day Outflows
While meme coins have faced challenges during recent market downturns, Dogecoin’s bullish indicators suggest a potential pathway for recovery that could uplift other tokens within the sector.
In conclusion, the substantial rise in trading volume and open interest for Dogecoin indicate a possible bullish trend emerging in the meme coin market.
This resurgence in market activity and trader interest may sustain upward momentum, benefiting not only Dogecoin but also other prominent meme coins.
As these developments unfold, stakeholders will closely monitor their implications in the evolving crypto landscape.
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Meta’s CEO Mark Zuckerberg envisions a future where smart glasses equipped with holographic displays will redefine how humans communicate and compute.
In an interview with YouTuber Kane “Kalloway” Sutter, Zuckerberg highlighted Meta’s ambitious plans, emphasizing that these glasses, featuring cameras, microphones, speakers, and full-field-of-view holographic displays, could eclipse smartphones as the dominant technology.
Despite skepticism from critics mocking Meta’s shift from Facebook to focusing on the metaverse, Zuckerberg remains bullish on smart glasses as the next big innovation.
He acknowledged that while these glasses won’t completely replace smartphones, they could significantly reduce their usage.
According to Zuckerberg, Meta is progressing through three phases of development: from a displayless glasses with voice AI, similar to Ray-Ban Meta, to a heads-up display, and finally to a premium version with a full holographic display.
Zuckerberg described these future glasses as not just a technological leap, but a seamless integration of real-time communication and augmented reality features, all without the bulkiness of traditional VR headsets.
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He believes these glasses will enable users to access information in a more natural and engaging manner compared to smartphones, which he and Kalloway criticized for disrupting presence.
Beyond mere communication devices, Zuckerberg sees potential for smart glasses as interfaces for neural technology.
Unlike invasive solutions like Neuralink, Meta is exploring a non-invasive neural wristband that interprets nerve signals for digital interaction.
Combined with holographic displays, this could transform daily life into a limitless Web3 environment.
While Meta is still fine-tuning these innovations, Zuckerberg revealed that prototype demonstrations have generated enthusiastic responses.
He emphasized their commitment to perfecting the technology before a broader release, highlighting the excitement these advancements have sparked among early testers.
In summary, Zuckerberg’s vision for Meta’s future revolves around smart glasses that blend cutting-edge technology with everyday usability, aiming to reshape how we interact with information and each other in the digital age.
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Bitdeer, a prominent Bitcoin mining company, has recently secured a 30-year leasing agreement with the Monroe County Port Authority for a site located at the Hannibal Industrial Park in Clarington, Ohio.
The site, formerly an aluminum factory, already possesses the essential power infrastructure necessary for Bitdeer’s mining operations, as per the company’s announcement.
Bitdeer plans to obtain up to 570 MW of additional power from this site in two phases.
The first phase aims to deliver 266 MW by Q3 2025, with the remaining 304 MW subject to approval by utility authorities.
This move underscores Bitdeer’s strategic expansion to enhance its operational capacity.
Analyst Mark Palmer previously expressed confidence in Bitdeer, highlighting the company’s industry-leading energy efficiency with an average cost of $0.04 per kilowatt hour.
This endorsement came amidst significant developments for Bitdeer, including a notable $150 million investment from stablecoin issuer Tether in May, which involved acquiring over 18 million shares with an option for an additional 5 million shares at $10 each.
Post the April 2024 halving event, concerns over miner profitability have intensified.
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Research by Cantor Fitzgerald revealed that many Bitcoin mining firms may face challenges, with estimated mining costs ranging from $43,913 to $62,276 per BTC.
This analysis used a market price assumption of $40,000 as the threshold for profitability, a level not yet regained post-halving.
In Cantor Fitzgerald’s assessment, Argo Blockchain Mining emerged with the highest mining costs at $62,276 per Bitcoin, followed closely by Hut8 at $60,360 per coin.
The research underscores the financial pressures facing miners amidst rising energy costs and reduced block rewards, which now stand at 3.125 Bitcoin per block.
Bitdeer’s long-term lease and expansion plans in Ohio reflect its commitment to scaling operations despite industry challenges.
The move positions Bitdeer to capitalize on its efficient energy model and strategic investments, reaffirming its role as a key player in the evolving landscape of Bitcoin mining.
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The IRS finalized its new crypto broker reporting requirements on June 28, delineating the affected industry participants while addressing widespread concerns.
Decentralized exchanges and self-custody wallets, pivotal components of the crypto ecosystem, were excluded from these rules.
The IRS clarified this exemption, acknowledging the complexities inherent in fully decentralized networks after reviewing extensive feedback.
However, the scope of the regulations encompasses stablecoins and tokenized real-world assets, treating them equivalently to other digital assets.
This decision underscores the IRS’s commitment to enhancing tax compliance across all sectors of the digital asset landscape.
IRS Commissioner Danny Werfel emphasized the necessity of these measures in combating potential tax evasion facilitated by digital assets:
“We need to make sure digital assets are not used to hide taxable income, and these final regulations will improve detection of noncompliance in the high-risk space of digital assets.
“Our research and experience demonstrate that third-party reporting improves compliance.”
READ MORE: Bitcoin Activity Hits Lowest Levels Since 2010 Amid Retail Investor Retreat
This sentiment aligns with earlier warnings from IRS criminal investigation chief Guy Ficco, who anticipated heightened crypto tax evasion in the upcoming tax season of 2024.
The IRS’s approach has sparked vigorous opposition from industry advocacy groups like The Blockchain Association and The Chamber of Digital Commerce.
These organizations have long contested the IRS’s broker reporting rules, arguing against their applicability to decentralized finance networks and highlighting significant compliance costs.
In 2023, The Blockchain Association voiced its objections, citing fundamental discrepancies between the IRS’s proposals and the operational realities of decentralized systems.
Recently, the association reiterated concerns over regulatory overreach and projected an annual compliance cost of $256 billion, arguing that the rules violated the Paperwork Reduction Act.
The Chamber of Commerce echoed these apprehensions, particularly regarding potential privacy infringements arising from the extensive documentation requirements, including the filing of billions of 1099-DA tax forms.
In summary, while the IRS has exempted certain decentralized entities from its new reporting rules, its comprehensive approach to digital asset taxation faces substantial resistance from industry stakeholders, who assert that these regulations impose undue burdens and threaten privacy rights.
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The much-anticipated native token of the Ethereum layer-2 network, Blast (BLAST), saw a 40% surge following its launch, outperforming other recent high-profile airdrops.
BLAST started at $0.02 per token, giving it a fully diluted value (FDV) of $2 billion at launch, based on data from Ambient Finance and Aevo, a perps trading platform.
Since its debut, BLAST’s price has risen over 40% to $0.0281, according to CoinMarketCap.
This performance contrasts with other recent token launches, such as Ethereum layer-2 network zkSync (ZK) and cross-chain interoperability LayerZero (ZRO), which have dropped 46% and 43% from their launch prices, respectively.
The BLAST airdrop released 17% of its total supply.
Users who bridged Ether or USD on Blast (USDB) to the network starting late last year received 7%, another 7% went to those who contributed to the success of decentralized applications (DApps) on the network, and the remaining 3% was allocated to the Blur Foundation for future community airdrops.
Despite its strong performance, the airdrop faced criticism from crypto market commentators on X, particularly from those who felt the launch valuation was lower than expected.
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Arthur Cheong, co-founder of DeFiance Capital, expressed surprise at BLAST’s $2 billion FDV, having anticipated a value closer to $5 billion.
Blast, co-founded by Blur creator Tieshun Roquerre, known as PacMan, faced criticism from its seed investors last November.
They argued that the network lacked sufficient features to justify a one-way bridging mechanism, which required users to lock up their ETH for several months.
The Blast airdrop, like other major airdrops this year, attracted numerous scammers on X.
These events are prime targets for scammers who create convincing copycat profiles, as airdrops typically require users to connect their wallets and sign transactions to claim their tokens.
The crypto security service Scam Sniffer reported that one user lost over $217,000 after falling victim to a Blast airdrop scam, having signed multiple phishing signatures.
This highlights the ongoing risks associated with large-scale airdrop events in the crypto space.
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The ratio of active Bitcoin addresses has fallen to its lowest level since November 2010, based on onchain data from IntoTheBlock.
In June, the weekly active wallet ratio hit a low of 1.22%, peaking at 1.32%. This highest ratio was last seen in November 2010.
Moreover, the total number of active wallets has also reached multi-year lows. The week of May 27 recorded 614,770 active wallets, the lowest since December 2018.
A declining active address ratio signifies a reduction in buying and selling activity among Bitcoin holders, suggesting a phase of market consolidation.
Juan Pellicer, a senior researcher at IntoTheBlock, attributes Bitcoin’s decreasing wallet activity to weaker retail participation compared to past cycles.
“This year’s run to a new all-time high was driven by institutional capital instead of retail investors,” Pellicer told Cointelegraph.
“The wider economic situation could have played a role in retail not making as many crypto investments as they’ve done in the past.”
The decline in activity comes as investors prepare for increased whale movements, including the Mt. Gox trustee’s plan to start distributing payments to creditors in July.
Some larger holders, including those associated with governments, have also been observed engaging in selling activities.
“Due to this concentration, much of the bearish trading activity is being performed offchain, which doesn’t significantly impact onchain address activity statistics,” Pellicer adds.
Are Runes struggling?
The drop in activity might seem counterintuitive to the launch of Runes, a fungible token protocol introduced to the Bitcoin ecosystem alongside the latest halving event in April.
Runes was anticipated to provide an alternative revenue stream for miners, which it did on the first day as miners earned record-high trading fees on halving day.
However, transaction fees have since normalized to pre-halving levels, and miner reserves, representing the new Bitcoin held by miners, are also at 14-year lows.
Pellicer told Cointelegraph that activity on Runes has cooled off, though the cyclical nature of such assets suggests this is a temporary lull rather than a permanent decline.
Meanwhile, recent crypto attention has shifted to memecoins and celebrity tokens, attracting speculators gambling on larger gains.
Though Bitcoin is known for its volatility, its current state can be considered stable compared to lower-cap memecoins.
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Bitcoin‘s recent plunge to a 53-day low can be attributed to a “cascading long squeeze” as miners continue to offload their holdings, according to Bitcoin analyst Willy Woo.
“Speculators kept adding to new long positions, just adding more fuel for more liquidations in a cascading long squeeze,” Woo, a pseudonymous Bitcoin analyst, wrote in a June 24 X post.
A long squeeze occurs when investors holding long positions (betting on a price increase) start selling as the price drops to minimize their losses.
This triggers further price declines, causing more long-position holders to sell.
This is the opposite of a short squeeze, which gained notoriety in January 2021 when retail traders inflated GameStop’s stock price, forcing large short-position investors to buy back the stock at higher prices, driving the price even higher.
Data from CoinGlass shows that a drop below $60,000, such as the June 24 dip below $59,000, could liquidate $1.16 billion in long positions.
In contrast, a 3.73% upward movement could liquidate $2.18 billion in short positions, indicating traders’ current bearish sentiment.
“Worth a breakdown of what’s happening given the fear in the market,” Woo added.
The Crypto Fear and Greed Index, which gauges market sentiment for Bitcoin and the broader cryptocurrency market, has plunged to its lowest point in nearly 18 months.
READ MORE: Metaplanet to Issue 1 Billion Yen in Bonds to Buy Bitcoin Amidst Soaring Stock Prices
Woo also highlighted the “post-halving miners capitulation” event.
This theory suggests that if Bitcoin’s price falls below a certain threshold, mining becomes unprofitable, leading miners to shut down their hardware and sell their coins.
“Superimposed on this liquidation squeeze, we have a post-halving miners capitulation,” Woo explained, noting that miners are selling Bitcoin to fund necessary upgrades while weaker miners are shutting down and liquidating their assets.
On June 25, Bitcoin’s price hovered just above the crucial $60,000 mark, trading at $61,320, according to CoinMarketCap data.
On June 24, Bitcoin experienced its most significant daily decline in over three months, falling 6.26% to $58,890, as noted by pseudonymous crypto commentator Bitcoin Archive.
“The biggest daily discount in price for 97 days,” they wrote on June 24.
Jan3 CEO Samson Mow believes the “Bitcoin dip is purely sentiment and fear driven, not from selling off large holdings.”
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