bitcoinlfg

Tag: drops

  • Zcash price drops to $190 amid broader crypto pullback

    Zcash price drops to $190 amid broader crypto pullback

    Zcash Price On Market Chart

    • Zcash price dropped to the $190 support level.
    • Macro headwinds also had Bitcoin falling to below $105,000 to trigger further bleeding across crypto.
    • Analysts remain bullish despite the dip.

    Zcash (ZEC) tumbled to lows of $190, with its double-digit declines reflecting widespread market unease.

    Triggered by macroeconomic pressures, most coins plummeted to key levels, including Bitcoin, which retested the $105,500 area.

    Crypto pullback and Zcash price today

    Zcash, the privacy-focused cryptocurrency launched in 2016, experienced a sharp decline on Friday.

    The token dipped to support around the $190 mark as a broader crypto market retracement ensued to see total market liquidations surpass $1 billion.

    ZEC, one of the outperformers in recent weeks, fell below the key support level of $200.

    Moreover, the price declines are accompanied by rising trading volume to reinforce the profit taking.

    Per CoinMarketCap, the daily trading volume for the privacy-focused coin has jumped 26% to over $742 million.

    Meanwhile, the price has fallen nearly 20% in the same time frame.

    Zcash price chart by CoinMarketCap

    Zcash has climbed 260% over the past month, outperforming nearly all of the top 100 cryptocurrencies by market capitalisation.

    The market-wide pullback reflects broader macroeconomic factors, including renewed tensions in the US-China trade dispute and the ongoing US government shutdown.

    Investors who had recently entered Zcash appear to be taking profits after a strong rally fueled by optimism surrounding its zero-knowledge proof technology.

    Zcash has seen a notable surge in institutional interest in recent weeks.

    Grayscale’s Zcash Trust has been a key driver, with assets under management exceeding $92 million — a signal of rising adoption.

    The trust allows traditional investors to gain exposure to ZEC, one of the leading privacy coins, without the operational complexities of holding the asset directly.

    ZEC price forecast

    Major declines across the market came as investors, spooked by the latest news from US regional banks, exited positions.

    Specifically, reports on Friday indicated that two US regional banks have hit the rocks with bad loans.

    Jitters around banking sector risks saw a sharp dump for bank stocks cascade into futures trading on Wall Street.

    A slip for the S&P 500 and the Nasdaq also sent crypto nosediving.

    But Bitcoin’s drop could allow some capital rotation to revive ZEC price, one analyst pointed out on X.

    Correlation among shielded transactions adoption gives this strength.

    Market analysts point to overbought conditions in the short term.

    A look at the Relative Strength Index (RSI) shows a dip into oversold territory, which means a potential reversal.

    Overall, while the $190 mark signals a key demand zone, the $240 mark represents a crucial hurdle.

    ZEC price reached highs of $295 earlier in the month.

    Share this article
    Categories
    Tags



    Source link

  • Bitcoin drops as bearish data sparks a 10% price dip warning

    Bitcoin drops as bearish data sparks a 10% price dip warning

    Bitcoin drops as bearish data sparks a 10% price dip warning

    • Bitcoin has dropped below the key 120,000 dollar level amid a fresh sell-off.
    • The market is showing signs of low volume and a lack of upward momentum.
    • Key on-chain data shows a lack of bid support below the 120,000 dollar mark.

    The triumphant return of the bulls has proven to be a fleeting and fragile affair.

    Just as the market was beginning to celebrate a new era of price discovery, a wave of determined selling has sent Bitcoin tumbling back below the critical 120,000 dollar level, a brutal rejection that has the bears once again in control and raises the grim prospect of a much deeper correction.

    The sell-off, which has seen the leading cryptocurrency fall nearly 3 percent on the day, is a story of fading momentum and evaporating support.

    The recent all-time highs now feel like a distant memory as the market slices through the bid liquidity that had once held it aloft.

    A market bracing for a deeper cut

    The mood among seasoned traders has shifted from cautious optimism to a grim acceptance of a new, more bearish reality.

    The market is now at a critical inflection point, with the very support that was so hard-won now under a sustained and powerful assault.

    “Market does still quote bid liquidity around 121K-120K but what we need to see next is absorption of sellers to rule out a sweep lower,” the popular trader Skew wrote in his latest market commentary on X.

    His short-term outlook was stark, adding that the market was “quite likely to be dominated by new shorts opening.”

    This view is being reinforced by the data.

    The trading resource Material Indicators highlighted that the market is now facing its “3rd consecutive Daily support test at the trend line,” a technical setup that suggests the bears are growing bolder with each attempt.

    Data from CoinGlass paints an even more worrying picture, showing a distinct lack of bid support much below the 120,000 dollar mark, while a wall of sell orders has multiplied overhead.

    The return of the $108,000 ghost

    This short-term weakness is taking place against a backdrop of a more troubling long-term picture.

    The veteran trader Roman warned his followers on X that the situation for Bitcoin remains tenuous, despite its recent record highs.

    “A friendly reminder that we are once again printing more bearish divergences, low volume, & lack of momentum on HTF. Both 1W & 1M,” he wrote, pointing to a series of classic warning signs that the rally is running out of steam.

    His conclusion is a chilling one for the bulls: the local range lows at 108,000 dollars, a level that has been a key battleground in the past, could soon come back into play.

    The king of crypto may have briefly touched the heavens, but the bears are now doing their best to drag it back down to earth.

    Share this article
    Categories
    Tags

    Source link

  • Crypto market news: BTC near $112K, ETH drops below $4,200 as fear grips traders

    Crypto market news: BTC near $112K, ETH drops below $4,200 as fear grips traders

    Crypto reels from “Red September” selloff as BTC, ETH, and SOL dip, but institutions hold firm, eyeing a Q4 recovery.

    • Bitcoin hovers above $112K, with bulls defending key support.
    • Ethereum drops 7% weekly as ETF outflows pressure sentiment.
    • Institutions stay invested, betting on a stronger Q4 recovery.

    Crypto markets are still reeling from a fierce “Red September” selloff that has sent jitters through traders and investors alike.

    There is a strong undercurrent of caution right now with investors watching the macro headlines, especially the Fed’s latest moves, and feeling heat from a resurgent US dollar and mounting regulatory uncertainties.

    The fear factor is high among retail traders, especially with meme coins back in panic territory, but interestingly, big institutions haven’t cleared out.

    That says a lot about the market’s long-term resilience.

    For all the volatility, veteran investors seem to believe this selloff could be paving the way for a healthier Q4, especially if some regulatory clarity and macro relief finally show up.

    Major crypto movers

    Bitcoin’s been tossed around all week, trying to hold firm just above the $112,000 mark.

    Despite all the drama, BTC’s daily change has been pretty muted, but it’s still down roughly 2% over the past seven days.

    The tension is palpable; there’s talk that a slip below $112,000 could trigger another rapid drop, but so far, bulls are digging in their heels.

    Ethereum is also fighting for higher ground, currently near $4,200.

    Its weekly loss is steeper than Bitcoin’s, about 7% and analysts see ETF outflows and seasonal September trading patterns in play.

    For Solana, it’s a similar story, with sellers driving the price toward $216, the coin shedding more than 2% in the latest session, and short-term holders running for cover.

    XRP has been a mild outlier, eking out some gains where most heavyweights reversed. It bounced up to around $2.86 and stayed resilient after threatening a breakdown below key support.

    DOGE, however, lost some of its shine, dropping just over 1% today as meme coin enthusiasm fizzled after the big liquidations.

    Even with all the noise, the big coins aren’t in catastrophic territory, but the road to recovery is littered with caution tape.

    Market update: News and broader trends

    This latest bout of selling is being blamed on a handful of big-picture trends.

    First and foremost, traders point to the Fed’s mixed messaging, a rate cut that should excite risk assets paradoxically made the US dollar even stronger, making it tougher for speculative bets on crypto to thrive.

    Huge liquidations have unfolded, with more than $1.65 billion in leveraged longs forced out of the market.

    Meme coins bore the brunt of the panic, but strong institutional flows suggest bigger players are sticking to their long game.

    Regulatory uncertainty is a running theme, debates in the US and Europe over tougher anti-money laundering rules and crypto tax policies have stoked investor anxiety.

    There are also worries over trade tensions and new tariffs added to US imports from India, Taiwan, and Canada, further muddying the waters and keeping risk appetite subdued.

    Yet there’s a strange sense of optimism simmering.

    Many believe the panic has set the stage for a more sustainable rally later in the year, especially if macro and regulatory conditions stabilize.

    Institutional adoption, fresh network upgrades, and the possibility of new Bitcoin-related policies, perhaps even news from President Trump’s upcoming speech, are keeping hope alive that the tide could turn before year-end.

    Share this article
    Categories
    Tags

    Source link

  • Numeraire price drops 25% as traders take profits

    Numeraire price drops 25% as traders take profits

    • Numeraire token NMR is down 25% as profit taking increases.
    • The Numerai native token recently exploded amid a $500 million investment by JPMorgan.
    • NMR price could drop to $15 and face resistance around $18.

    As top coins struggle with sell-off pressure, the price of Numeraire (NMR) has pared recent gains as it dropped 25% in the past 24 hours.

    Like the rest of the cryptocurrency market that has witnessed meteoric gains in the past few days, NMR has dumped as traders lock in gains.

    Numeraire price hovered around $16.36 at the time of writing, down as Bitcoin struggled and Ethereum dipped under $4,400.

    The release of PCE inflation data on Friday, which showed prices rose in July compared to June and at highs seen in early 2025, pushed stocks down. Cryptocurrencies were slipping amid this overall outlook.

    Numeraire price falls 25% amid profit-taking

    Numeraire, the ERC-20 token powering Numerai’s AI-driven hedge fund platform, recently shot to highs above $22.80.

    The token’s meteoric rise, which included a 150% spike in a week, benefited largely from news of a $500 million investment from JPMorgan Asset Management.

    The institutional backing doubled Numerai’s assets under management to nearly $1 billion, boosting NMR’s profile and drawing significant trader interest. NMR price pushed from lows of $8.11  to a multi-month high of $22.87 across major exchanges.

    Daily trading volume also peaked as bullish sentiment dominated.

    However, traders keen to lock in profits have contributed to a 25% price drop, with sellers eyeing more below the $16 level. Notably, the reversal has coincided with a 64% decline in trading volume, now at $340 million.

    This is positive for the token as selling pressure isn’t elevated, but also signals reduced market participation from buy the dip players.

    What’s next for Numeraire price?

    With NMR now trading at $16.36, technical indicators suggest a bearish setup that could lead to further declines.

    The token has broken below the $18.60 upper Bollinger Band, and the Relative Strength Index (RSI) below the neutral line indicates  weakening momentum.

    On the daily chart, NMR faces immediate support at $15, a level where the recent breakout candle formed.

    If this support fails, the next key level is $14.57, with a deeper drop potentially testing $10.50, as forecasted by some analysts for September 2025.

    Resistance is now at $18, with a stronger barrier at $20, a psychological level that aligns with late 2024 highs.

    A break above $18 could signal a reversal, but the current bearish trend, coupled with declining volume, suggests caution.

    The broader market sentiment and Numerai’s ability to leverage JPMorgan’s investment for sustained growth will be critical.

    Share this article
    Categories
    Tags

    Source link

  • Litecoin price forecast: what next as LTC drops to key support?

    Litecoin price forecast: what next as LTC drops to key support?

    Litecoin Price Bulls Vs Bear

    • Litecoin trades near $112, just in the green on the day but at risk of fresh losses.
    • The LTC price hovers at key support level as bulls attempt to hold bears off.
    • Bullish crypto market and catalysts such as spot Litecoin exchange-traded funds could help LTC go higher.

    Litecoin (LTC) is trading at $112, about 2% up in the last 24 hours, but in the red over the past week and month time frames.

    Meanwhile, the 24-hour trading volume of $694 million is more than 22% down on the previous day as top altcoins look to bounce.

    As LTC price drops towards the $110 level, can bulls hold onto gains or is the altcoin poised for a revisit of the psychological $100 mark and lower?

    Litecoin price forecast: Is LTC set for a revisit of $90 next?

    Litecoin price has broken below the middle line of an ascending channel pattern. Price at $112 suggests a broader crypto pullback could accelerate LTC’s dip to support at $100 and possibly to $90.

    The technical indicators on the daily chart support a likely flip lower, with RSI and MACD giving sellers the upper hand.

    Litecoin Price
    Litecoin chart by TradingView

    Open Interest has also dropped slightly, down to $994 million from the record highs of $1.27 billion hit recently as LTC spiked.  OI in Litecoin futures does notably remain higher than the lows of $800 million seen in early August.

    A break above $120 could thus allow bulls to test the upper channel barrier near $140 and aim for the psychological $200 mark.

    While the Moving Average Convergence Divergence (MACD) indicator shows a bearish crossover from mid-August and prints red histogram bars, a mixed setup has other indicators signaling potential resilience.

    For instance, the Relative Strength Index (RSI) on the daily chart sits at 46, but is upsloping to suggest buyers could keep off a fresh dip towards the oversold territory.

    If RSI pops above the neutral point of 50 and market conditions align, LTC could see the above scenario play out.

    What could help Litecoin price higher?

    Network growth, including a significant hashrate spike, suggests confidence in the proof-of-work coin.

    This and market sentiment point to a scenario where bulls ride the overall crypto uptick in the coming months to drive higher.

    The upcoming approval of spot ETFs, with Litecoin among those with notable high odds of a nod, add to this outlook.

    In this case, the SEC’s October 2025 decisions on spot Litecoin ETFs from Grayscale, Bitwise, and CoinShares, which carry a 90% approval probability, per Bloomberg analysts, could be huge catalysts.

    Experts say a SEC approval for LTC spot ETFs could drive institutional inflows of up to $500 million in Litecoin at launch, printing the trajectory that saw Bitcoin’s price rally to new highs in early 2024.

    Share this article
    Categories
    Tags

    Source link

  • Bitcoin drops to $111K as post-Jackson Hole bounce fades

    Bitcoin drops to $111K as post-Jackson Hole bounce fades

    Bitcoin Price

    • Bitcoin price has dropped to lows of $110,956 as gains seen on Friday disappear.
    • The downturn has accelerated amid the BTC sell-off and decline in dominance.
    • Analysts say Bitcoin can extend losses below $110k amid wider fall.

    Bitcoin’s downturn since the brief surge post Federal Reserve chair Jerome Powell’s speech at Jackson Hole on Friday has extended to below $111k.

    The benchmark digital asset has slipped more than 3% to drop to lows of $110,956 across major exchanges, with BTC struggling as the bounce that followed Powell’s comments on cryptocurrency quickly fades.

    Bitcoin’s dominance was also falling sharply, down to around 57%.

    Analysts remain bullish, but could Bitcoin price drop below $110k and trigger further losses?

    Bitcoin extends dip to $111k

    Cryptocurrencies spiked on Friday as risk assets exploded amid comments by Powell that the central bank could consider cutting rates sooner.

    However, the brief rally that followed the Jackson Hole economic symposium has since swiftly unravelled, with Bitcoin plummeting to touch lows of $110k.

    On Aug. 22, BTC saw an intraday peak of $117k – up from lows of $113k earlier in the day.

    According to QCP, the downturn to current prices comes as an early whale offloaded a substantial $2.7 billion in BTC.

    This rapid sell-off has accelerated a dip in BTC dominance, which hovers around 57%.

    Meanwhile, Bitcoin’s weakness has been evidenced by a dip in spot exchange-traded funds (ETFs) flows, with six consecutive sessions of outflows putting bulls under pressure.

    What next for BTC? Analysts’ take

    Bitcoin’s long-term trajectory remains largely bullish, and a bounce to the all-time high above $124k is not an impossibility.

    However, analysts at Glassnode are pointing to a short-term downside arc.

    Particularly, all Bitcoin cohorts, with those in the 10- 100 BTC group biggest sellers, are in a distribution phase.

    Increased selling could be bad news for bulls as a breakdown below $110k could ensue.

    But despite this outlook, analysts at QCP Group maintain that Bitcoin is bullish.

    The analysts say that despite the current sell-off, buyers can easily absorb the pressure as happened in July.

    With BTC dominance slipping, it is Ethereum that may benefit, the analysts said.

    “BTC dominance slipped from 60% to 57%. Still above the sub-50% levels of 2021, but enough to fuel speculation that whales expect $ETH to outperform, especially if ETH staking ETFs secure approval later this year,” QCP noted.

    Bitcoin price currently hovers around $111,200, bouncing off lows last seen in early July. Investors will be watching that $110k level as well as broader market conditions.

    Share this article
    Categories
    Tags



    Source link

  • BTC hovers at $115K; ETF flows turn negative, short-term holder profitability drops

    BTC hovers at $115K; ETF flows turn negative, short-term holder profitability drops

    BTC hovers at $115K; ETF flows turn negative, short-term holder profitability drops

    • Bitcoin (BTC) is trading in a low-liquidity “air gap” between $110K and $116K, according to Glassnode.
    • The market is “re-finding its footing” after a post-all-time-high correction amidst low volume and weak conviction.
    • Spot Bitcoin ETF flows recently turned negative, with a 1,500 BTC outflow marking the largest since April.

    Bitcoin is treading water around the $115,000 mark on Thursday morning in Asia, up a modest 1% over the last 24 hours, as the inevitable correction following its recent all-time high continues to unfold amidst low trading volumes and a clear lack of market conviction.

    Analysts are now closely watching a low-liquidity zone that could either serve as a new foundation for the next leg up or become a trapdoor for a deeper price drop.

    According to on-chain analytics firm Glassnode, Bitcoin has entered what it describes as an “air gap”—a low-liquidity zone between $110,000 and $116,000.

    This has occurred after the price broke down from a major supply cluster where short-term holders had previously found significant support. These “air gaps” are areas that typically see very little historical trading activity.

    They can either provide an opportunity for new buyers to accumulate positions and build a strong base, or, if demand fails to materialize, they can lead to sharp and swift moves to the downside.

    “The market is effectively re-finding its footing,” the Glassnode analysts wrote, framing the range between $110,000 (the prior all-time high) and and 116,000 (the cost basis for recent buyers ) as the new critical battleground.

    They noted that while some opportunistic buying has emerged on there cent dip, with approximately 120,000 BTC acquired by new buyers, the price has yet to reclaim key resistance levels convincingly.

    A particularly important threshold is the 116,9K level, which marks the entry point for many recent short-term holders.

    Cooling sentiment: ETF outflows and reduced leverage

    Several indicators point to a cooling of the bullish fervor that recently propelled Bitcoin to its record highs. Short-term holder profitability has dropped from a peak of 100% down to 70%.

    While Glassnode frames this as a typical development for a bull market’s mid-phase, they caution that without a fresh wave of capital inflows, this could quickly erode market sentiment.

    Indeed, spot Bitcoin ETF flows have recently turned negative, with a 1,500 BTC outflow recorded earlier this week—the largest single-day outflow since April.

    At the same time, funding rates in the derivatives market have cooled significantly, a sign of reduced leverage and a more cautious stance among speculative traders.

    Market maker Enflux offered a similar take on the current environment. “Crypto markets remain in a fragile holding pattern. Despite some relief in the altcoin space, majors like BTC and ETH are still struggling to inspire confidence,” the firm wrote in a recent client note.

    “The broader trend? Heavy legs with more or less light volume.” Enflux concluded, “Until BTC and ETH reclaim strength with volume, the path of least resistance could remain sideways to down.”

    The market’s next significant move now likely hinges on whether a new cohort of buyers is willing to step in and build a solid support base within this low-volume “air gap,” or whether another flush down towards the $110,000 level is needed to fully reset the trend.

    For now, traders remain cautious, and the bulls are yet to prove they have regained control.

    Broader market snapshot

    • BTC: While the market navigates this “air gap,” some observers are pointing to a potential, longer-term Bitcoin supply shock.

    • This is being driven by reportedly drying up reserves on Over-The-Counter (OTC) desks and steady corporate accumulation, a combination that could “uncork” a major price move after a potential dip below $110,000.

    • ETH: Ethereum (ETH) is up 2% in the last 24 hours, trading just below the $3,600 mark. The CoinDesk 20 Index, which tracks a broad basket of crypto assets, gained 1.69% to 3,815.22.

    • Gold: Gold’s recent rally stalled on Wednesday as traders took profits. The market is currently weighing rising odds of a Federal Reserve rate cut against ongoing U.S. trade tensions and a looming Fed leadership shakeup.

    • This has left prices flat after a three-day gain that was driven by signs of economic weakness. Spot gold last traded at $3,372.11, down 0.24% on the day.

    Share this article
    Categories
    Tags

    Source link

  • Bitcoin drops to $115K amid third major wave of profit-taking, new tariff tensions

    Bitcoin drops to $115K amid third major wave of profit-taking, new tariff tensions

    Bitcoin drops to $115K amid third major wave of profit-taking, new tariff tensions

    • Bitcoin (BTC) fell 2.3% to ~$115,300, pressured by a third major wave of profit-taking and new US tariffs.
    • $6–8 billion in realized gains were recorded in late July, with an “OG whale” selling 80,000 BTC on July 25.
    • New tariff tensions, including measures targeting Canada, have rattled broader risk assets, including crypto.

    Bitcoin is poised to end the trading week in Asia on a weaker note, down 2.3% on the day and changing hands above the $115,300 mark.

    The leading cryptocurrency is grappling with a combination of renewed tariff pressure from the White House and a significant wave of profit-taking, following its historic run to new all-time highs.

    According to a new report by on-chain analytics firm CryptoQuant, the Bitcoin market has just experienced its third major profit-taking wave of the 2023–2025 bull cycle.

    A substantial $6–8 billion in realized gains were recorded in late July, indicating a significant number of investors chose to cash in on the recent price surge.

    Like the previous two phases of profit-taking in this cycle, this latest wave was defined by large spikes in the Spent Output Profit Ratio (SOPR), a metric that indicates whether coins being sold are in profit or loss. This was particularly evident among short-term holders.

    The wave was further intensified by a significant 80,000 BTC sell-off by an “OG whale” (an early, long-time holder) on July 25.

    The data provider also noted that “new whale cohorts”—those who have accumulated their Bitcoin within the last 155 days—were the dominant sellers during this period.

    In a clear sign of intent to exit positions at what were perceived as peak prices, exchange inflows surged to a massive 70,000 BTC in a single day after the OG whale’s sell-off.

    The selling pressure was not confined to Bitcoin alone; Ethereum-based whales holding assets like WBTC (Wrapped Bitcoin), USDT, and USDC also realized up to $40 million in daily profits, further supporting the narrative of a broad-based capital rotation out of some positions.

    Historically, these major profit-taking events have been followed by a two- to four-month period of market consolidation before the next major leg higher, CryptoQuant wrote in its report.

    That very pattern may be playing out again, particularly as appetite from US investors appears to be waning. The Coinbase premium, a key indicator that tracks the price difference between Coinbase and other global exchanges, has recently flipped negative.

    This suggests that American buyers are no longer willing to pay a premium for Bitcoin, a sign of cooling demand in a crucial market.

    Tariff jitters return, adding to market pressure

    Adding to this cautious internal market dynamic is the re-emergence of macroeconomic risk.

    A new round of global tariffs from the White House is dragging down markets in Asia, with Japan’s Nikkei 225 and South Korea’s KOSPI both opening in the red.

    Bitcoin, too, is not immune to these pressures. Historically, digital assets have tended to follow equity markets lower when the White House announces new tariffs, and while this correlation has shown signs of weakening, it has not disappeared entirely.

    President Trump’s latest tariff escalation, which includes new measures that specifically target Canada, has rattled broader risk assets, with equities, bonds, and crypto all seeing declines amidst fears of renewed inflation and further supply chain disruptions.

    Without a clear new macro catalyst or a resurgence of strong, structural inflows, risk-taking in the crypto market is likely to remain selective, with conviction being light. Market maker Enflux, in a note to CoinDesk, echoed this sentiment.

    “Until BTC or ETH can post a clean reclaim of recent local highs, price action may stay choppy and rotation thematic rather than trend-driven,” the firm stated, suggesting a period of sideways, volatile trading may lie ahead.

    Share this article
    Categories
    Tags

    Source link

  • Bitcoin L2 Stacks (STX) price drops heavily after transaction suspension

    Bitcoin L2 Stacks (STX) price drops heavily after transaction suspension

    Bitcoin L2 Stacks (STX) price drops heavily amid transaction suspension news

    • Stacks (STX) drops 2.5% as Bithumb announces temporary halting of transactions.
    • Network upgrades aim to boost Stacks’ security and features.
    • The suspension of transactions is scheduled to begin on July 29.

    Stacks (STX) token has seen its price drop by 11.4% in a week, even as the Bitcoin (BTC) price remains largely bullish.

    The decline comes at a time when excitement is building around Bitcoin-based DeFi and key network upgrades are underway.

    However, a major development from South Korean exchange Bithumb appears to have influenced investor sentiment, triggering notable short-term pressure on the STX token.

    Price pressure hits Stacks (STX) despite DeFi momentum

    STX is currently trading at $0.7786, marking a drop of 2.5% today and a sharp 11.4% decline over the past seven days.

    This drop comes even as Bitcoin, the asset it is built to complement, maintains a largely positive trend.

    The downward move has raised eyebrows among market watchers, especially given the recent momentum around the Stacks DeFi ecosystem.

    But despite the drop, STX has still gained more than 15% over the last month, driven in part by the ongoing “STX DeFi SZN” campaign — a collaborative launch among leading Bitcoin DeFi protocols.

    Through a partnership with Zealy.io, the campaign is offering 50,000 STX in rewards for users completing on-chain quests.

    While the broader DeFi push is designed to strengthen the ecosystem, it hasn’t been enough to offset short-term fears triggered by external factors.

    Bithumb’s temporary suspension fuels uncertainty

    One of the main catalysts behind STX’s recent price dip is the news of Bithumb’s announcement of a temporary suspension of STX deposits and withdrawals.

    Scheduled to begin at 03:00 UTC on July 29, according to a report by Bitcoin World, the suspension is aimed at supporting a significant upgrade of the Stacks network.

    For many traders, however, the move has sparked concern.

    Even though such suspensions are standard during blockchain upgrades, the market often reacts with caution.

    Investors worry about temporary inaccessibility and possible disruptions in trading activity.

    As a result, some may have opted to sell early to avoid complications, contributing to the current price decline.

    Stacks upgrades bring long-term promise

    The Stacks Network upgrades themselves are crucial milestones for the network.

    Stacks is a Bitcoin Layer 1 blockchain that enables smart contracts and decentralised apps (dApps) to run using Bitcoin as the settlement layer.

    It brings programmability to Bitcoin without changing Bitcoin itself.

    Transactions on Stacks are automatically hashed and secured by Bitcoin’s hashpower through a mechanism known as Proof of Transfer (PoX).

    This approach makes Stacks one of the most secure smart contract layers available today.

    The upcoming upgrade is expected to enhance this security while improving performance and enabling new features for developers and users alike.

    Moreover, STX plays a central role in this ecosystem. It is used for transaction fees, governance decisions, and stacking, where users can earn Bitcoin by locking their tokens.

    As the Stacks network upgrades progress, STX may gain greater utility and adoption, potentially reversing the current downtrend over time.
    Share this article
    Categories
    Tags

    Source link

  • Altcoin market cap drops 41% amid crypto winter fears

    Altcoin market cap drops 41% amid crypto winter fears

    • Bitcoin and COIN50 fall below 200-day moving averages.
    • Venture capital remains 60% below 2021 levels despite mild rebound.
    • Market may stabilise between mid and late Q2 2025, says Coinbase.

    The risk of a renewed crypto winter is rising, Coinbase Research warned this week, as key technical and macroeconomic indicators suggest the digital asset market may be entering another prolonged downturn.

    In a note published yesterday, Coinbase said Bitcoin has slipped below its 200-day moving average—a level widely seen as a bearish signal.

    The COIN50 index, which tracks the top non-Bitcoin assets on the platform, has also fallen beneath its long-term support.

    Adding to the market stress are surging global tariffs and prolonged fiscal tightening, both of which are weighing on investor sentiment and curbing inflows into crypto.

    The situation echoes the 2022 crash, when over $2 trillion in market value was wiped out within 18 months.

    Altcoins have been hit the hardest. Excluding Bitcoin, the total crypto market cap has dropped 41% since its December 2024 peak, falling to $950 billion.

    That figure is lower than any level recorded between August 2021 and April 2022, a time when market turbulence was already high.

    Altcoins fall 41%

    According to Coinbase, the sustained drawdown in altcoins highlights the weakening appetite for riskier crypto investments.

    Tokens outside the Bitcoin ecosystem have seen sharp sell-offs amid thin liquidity and a lack of new capital.

    The COIN50 index now trades well below its 200-day average, signalling broad technical weakness across the sector.

    Retail interest has also declined, while institutional flows remain limited. This suggests that the bullish momentum seen in late 2024 has largely dissipated.

    Many smaller projects are underperforming, particularly those in niche segments such as decentralised AI, Web3 gaming, and tokenised real-world assets.

    Funding stays low

    Coinbase’s report also points to stagnation in venture capital. Although investment volumes have picked up modestly since late 2024, they remain 50% to 60% below the highs recorded during the 2021–2022 cycle.

    This has left many early-stage startups without the runway to scale, pushing some to pause development or downsize operations.

    The absence of fresh capital has slowed innovation across key verticals.

    Many in the industry had expected decentralised finance, metaverse applications, and crypto crowdfunding models to lead the next bull cycle. Instead, these areas have stalled.

    Macro weighs on sentiment

    Coinbase cited external economic pressures as a major reason for the recent slump.

    Tighter monetary policy, high interest rates, and the escalation of global tariffs have all eroded investor confidence.

    David Duong, head of institutional research, said the investment environment has become “paralysed” as both traditional and crypto markets face liquidity stress.

    These macro headwinds have discouraged speculation and limited the flow of capital into digital assets.

    Traders have pulled back, focusing instead on safe-haven assets as geopolitical risk and inflation remain elevated.

    Recovery may follow

    Despite the gloom, Coinbase believes the market may find a bottom between mid and late Q2 of 2025.

    A stabilisation in macro conditions—particularly a slowdown in inflation or an easing of interest rates—could help revive capital flows.

    Coinbase warns of a potential crypto winter as altcoins drop 41% and Bitcoin breaks key support. Market cap falls to $950b, mirroring 2022’s downturn.

    According to Duong, sentiment may reset quickly once market stress subsides, opening the door to a recovery in the second half of the year.

    The report stops short of making bullish predictions but says tactical positioning may be useful in the current environment. Analysts suggest keeping a close eye on liquidity trends and macro data as potential signals of a shift in momentum.

    Share this article
    Categories
    Tags

    Source link