Here are some of the major developments in the world of crypto over the past few days.
Permanent holders' addresses have amassed nearly $23 billion worth of BTC in the last month, according to on-chain data by CryptoQuant. Ki Young Ju, the CEO, posted this development on X, which charted the steep rise of the 30-day demand for permanent holders of Bitcoin. Close to $22.8 billion, or 404448 BTC, flows into these addresses.
Ki further believes that announcements include TradFi companies, institutions, or governments announcing having acquired Bitcoin in Q3 2024. Ki says retail investors would then lament not having bought it earlier due to being scared by news stories or macroeconomic concerns such as selling by the German government. Other bullish signals on a resilient foundation include that miner capitulation is over soon and the hash rate is stable despite high mining costs in the U.S.
Ki is still seeing an intact bull market, with retail investors largely absent and the activity of long-term holders diminished. He told his 276,000 followers it would reconsider that stance if the market did not rally in the next two weeks. From Aug. 5, when it plunged by 14%, Bitcoin has since rebounded with the Fear and Greed index, and sentiment has also improved a little. BTC was trading at $56,836 in writing.
SOL/ETH Ratio Strikes All-Time High on the Back of Market Turmoil
The SOL/ETH ratio—which gauges Solana's value about Ether—reached an all-time high on August 6 at 0.0595, per TradingView analysis. It occurred after a massive crypto sell-off of about $500 billion, prodded by turmoil in traditional markets, heavy sales by Jump Crypto, and broader macroeconomic concerns.
On Aug 5, Ether was down 22% vs. Solana's drop of 36%. The former recovered the furthest by 35% from $110 to $144 at the time of writing. Ether recovered just 15% from $2,157 at the yearly low to $2,463. The previous highest SOL/ETH ratio was 0.0591 in March, amid a heavy Solana rally that briefly pushed its market capitalization to new highs.
The crypto community has become highly distrustful of optimism relating to ETH, and many have been known to point out that the asset has historically underperformed whenever high optimism is felt. Also, machine intelligence firm Spectral Labs announced on August 6 the launch of an AI-powered bot designed to automatically short ETH whenever social media is posing a bullish feeling for the ETH/BTC charts.
CoinDCX Launches Crypto Investors Protection Fund in India
One of India's biggest cryptocurrency exchanges, CoinDCX, has announced a crypto investors protection fund to bring more security into the crypto market in India. This CIPF shall be provided by exchanges, according to them, in very rare cases of security harm or any other negativity. Seeded with 50 crore rupees, about $595,800, this fund is supposed to help in extremely rare cases of security damage or any other negativity.
This multi-party computation is but one leg of a very strong institutional security arrangement in place for the exchange, according to Sumit Gupta, the co-founder of CoinDCX. It also contains two-factor authentication and advanced encryption methods securing users' data and assets through CoinDCX. Every year, CoinDCX will donate 2% of its brokerage profits to this CIPF fund. The committee agreed to consider this fund at some apt time and enhance it further if required.
In July, CoinDCX acquired BitOasis, one of the few popular digital asset trading platforms across the Middle East and North Africa region, thereby extending its effect into the MENA market. This acquisition was made to improve the user experience and diversify products related to the two active trading platforms.
This is at a time when the Indian crypto market is already reeling under several big security concerns, especially following the $235 million hack at the WazirX exchange in July. It was an incident that spurred the Indian exchanges into putting in place a robust security infrastructure to protect the digital asset market and investors from further hacks.