A crypto exchange Crypto.com confirmed that hackers stole nearly $34 million during Monday's hack. In a Tuesday update, the exchange revealed that hackers stole 443.93 bitcoin ($18.7 million), 4835.25 ether ($15.2 million) and approximately $66,200 in USD. The company faced criticism over its communication after the incident. The company's CEO only confirmed the hack on Wednesday, three days after it took place. In total, the hack affected 483 users. However, Crypto.com said that they fully reimbursed all of them. The…
Bitcoin recovered slightly over the last 24 hours, hovering above the $42,000 mark. Crypto market cap edged back above $2 trillion on BTC recovery.
The largest crypto rose 1.5% in the last 24 hours. Moreover, altcoins posted even more significant gains.
The most prominent innovative contract network crypto Ethereum rose by 4% to $3,250. On the other hand, the Binance coin rose by 3% to $465, and Solana rose by almost 5% to $143. Cardano, Avalanche and Polkadot posted even more significant gains, 7%, 8.3% and 8.2%, respectively.
The rally briefly changed the balance between crypto shorts and longs. During the brief rally, traders betting against cryptos lost $82 million in liquidations in just 24 hours. For comparison, traders betting long on crypto lost $47 million in the same period.
Short sellers lost $25 million on betting against Bitcoin alone, according to data from coinglass.
Still, short-sellers are undeterred. The majority is still betting that crypto will go down. Some 70% of futures traders held short positions in the last 24 hours.
The liquidation numbers favouring the longs is a relatively minor blip on the chars. But, unsurprisingly, the longs have suffered much more during the recent BTC crash.
However, the crash may be over for now. A blockchain indicator suggests that Bitcoin may have reached its bottom after losing nearly 40% of its value.
The entity-adjusted dormancy flow, the ratio between BTC price and the value of coin dormancy, fell below $250,000.
Dormancy refers to the average number of days each coin remained in the same wallet. The metric is a measure of how much investors are holding.
Bitcoin entering the Buy Zone on Dormancy Flow.
This bottoming signal has only flashed 5 times before in Bitcoin's history. pic.twitter.com/0P36jYMzvw
— Will Clemente (@WClementeIII) January 11, 2022
When the price of BTC falls enough relative to dormancy, that suggests it may be time to buy. Specifically, it shows that more people hold the coin relative to the market cap.
The market cap is the value of all tokens multiplied by the number of coins in circulation. Currently, Bitcoin’s market cap is $810 billion. On the other hand, the total crypto market cap is $2.02 trillion.
The entity-adjusted dormancy flow has been reliable in the past. However, as many observers have noted, when the indicator falls to the $250,000 range, it signals a significant bottom for the BTC price.
That’s not the only factor suggesting a bottom. Bitcoin nearly missed the dreaded death cross. The ominously named indicator is when the 50-day moving average falls below the 200-day moving average.
The indicator usually shows a significant reversal in investor sentiment. However, in crypto, it can also signal that the markets have bottomed out.
Moreover, billionaire investor Mike Novogratz also called the Bitcoin bottom last week, near the $38,000 to $40,000 mark. He cited great institutional demand in his arguments.
According to Novogratz, large financial institutions will want to get into Bitcoin at that price range.
However, it is crucial to consider the fundamentals. Bitcoin is falling on the prospect of higher interest rates. Inflation data and more Fed announcements will likely have an even more significant effect on the price.