Decentral Block Post

Caradano’s native gas-paying token ADA received a big blow at the start of June when the SEC regarded it as a security in its lawsuit against Binance and Coinbase.

The lawsuit triggered a 42.5% drop in ADA’s price from $0.37 to a two-year low at $0.21 within a few days after SEC’s lawsuit.

Additionally, the token faced further downside selling pressure due to delisting on U.S.-based trading apps Robinhood and eToro.

However, under the hood, the network has been making progress with an uptick in DeFi activity after a scalability upgrade in May.

The technical and on-chain analysis of the token also shows potential for a positive recovery.

Caradano’s native gas-paying token ADA received a big blow at the start of June when the SEC regarded it as a security in its lawsuit against Binance and Coinbase.

The lawsuit triggered a 42.5% drop in ADA’s price from $0.37 to a two-year low at $0.21 within a few days after SEC’s lawsuit.

Additionally, the token faced further downside selling pressure due to delisting on U.S.-based trading apps Robinhood and eToro.

However, under the hood, the network has been making progress with an uptick in DeFi activity after a scalability upgrade in May.

The technical and on-chain analysis of the token also shows potential for a positive recovery.

A third straight week of positive digital asset inflows has fully corrected nine previous weeks of outflows for the market, according to a report from CoinShares published on July 10. 

This week’s inflows registered $136 million. Bitcoin (BTC) funds continued their trend of holding the anchor position, with 98% of the inflows coming from BTC. The other 2% mostly came from Ether (ETH), multi-asset holdings, and a handful of altcoins.

After nine weeks where digital asset outflows outpaced inflows, this third consecutive week of positive movement brings the current streak’s total to $470 million. According to Coinshares, this total fully corrects for the previous outflow streak.

Bitcoin inflows showed no signs of slowing down this past week after posting year-long highs in the previous two. As Cointelegraph previously reported, BTC inflows for last week were $123 million. This week adds $10 million, bringing the two-week inflow haul for BTC alone to $256 million.

This continues Bitcoin’s crypto market dominance by extending its total market cap from last week’s 51.46% to a reported 51.66% share as of July 11.

The price of Bitcoin has been trading between $29,900 and $31,160 for the past 18 days, causing concern among investors who are looking for explanations for the lack of a clear trend. 

After a 25.5% rally between June 15 and June 23 led to Bitcoin’s (BTC) highest price level in 13 months, one would expect investors to become more active and optimistic, but BTC’s inability to sustain prices above $31,000 and neutral on-chain and derivatives data do not corroborate this thesis.

Bitcoin ETF expectations faced a harsh regulatory environment

The current price situation is particularly worrisome because of the expectations that arose after BlackRock, the world’s largest fund manager, applied for a spot Bitcoin exchange-traded fund (ETF) on June 16. Some analysts have predicted a Bitcoin price of $100,000 by the end of the year, adding to the frustration of traders who are betting on further gains.

It’s worth noting that in mid-April, investors experienced a consolidation of prices around $30,000, but it didn’t last longer than a week, and the price eventually dropped to $28,000. This movement explains why investors are hesitant to build positions at the current price levels and prefer range trading.

Despite the initial excitement about the possibility of the United States Securities and Exchange Commission approving a Bitcoin instrument for traditional financial markets, there’s negative price pressure due to the regulatory actions against leading exchanges like Coinbase and Binance.

Bitcoin (BTC) held on exchanges is down to where it was at the 2017 BTC price all-time high, data confirms.

Tracked by on-chain analytics firm Glassnode, the latest figures show less than 12% of the BTC supply now resides in exchange wallets.

Analyst: BTC price “on the cusp of true price discovery”

Bitcoin returned to exchanges during the 2023 BTC price upside, during which BTC/USD more than doubled from cycle lows.

The period since late April has seen a reversion to the long-term trend of coins leaving exchanges however, this month, it hit a milestone.

As of July 10, 11.59% of the available BTC supply currently lies in known exchange wallets labeled by Glassnode. The number has not been this low since mid-December 2017 — when Bitcoin hit its previous all-time high of $20,000.