After attempting to maintain the $25,000 mark yesterday, Bitcoin (BTC) dropped to lows of $23,788 overnight. Perhaps this is an indication that the world’s largest cryptocurrency by market value’s two-month rally has come to an end.
Meme-token dogecoin was up 15% over the last 24 hours. One analyst said that the token is rallying ahead of its launch of “Dogechain,” which requires wrapped doge for trading.
Unlike BTC, Ether (ETH) was up slightly on the day, trading at around $1,900. According to a report from research firm FSInsight, Ether has a good chance of exceeding Bitcoin in market cap over the next 12 months because the Ethereum blockchain’s switch to a proof-of-stake (PoS) mechanism will reduce both the production of the tokens and selling pressure from miners.
A report from CoinShares showed that crypto funds had $17 million in outflows in the seven days up to Aug. 12, ending six consecutive weeks of inflows. Bitcoin (BTC) investment products saw $21 million in outflows, and short Bitcoin positions, which bet on a price decline of the largest cryptocurrency by market capitalization, had $2.6 million in inflows.
Cryptocurrency exchange Huobi Global announced it will stop offering derivatives trading services to users in New Zealand starting next week, just a couple of months after expanding operations to the country. The Seychelles-based cryptocurrency exchange cited “local compliance policies” as the reason for withdrawing margin trading services, options and ETPs as of next week.
Celsius Network, the crypto lender that filed for bankruptcy in July, appears to be in even worse financial straits than previously signaled. A new court filing Monday from Kirkland & Ellis, a law firm the crypto lender hired to lead its restructuring efforts, included financial projections that Celsius will run out of cash by October.
In Latin America, Brazil’s largest brokerage, XP, launched Bitcoin and Ether trading. The company, which has 3.6 million customers, hopes to reach 200,000 active crypto users by the end of 2022.
Is This The Most Reliable BTC Bottom Signal?
Puell Multiple, a bottom signal for Bitcoin, currently sits at 0.54, and values under 0.50 have historically marked price bottoms and are considered to be good accumulation zones.
The indicator fell to 0.34 in July – the lowest it has gone since 2019 according to data from Delphi Digital.
The Puell multiple is the daily issuance of BTC (in USD) divided by the 365-day moving average of the daily issuance of BTC (in USD). It compares the short-term revenue of BTC miners to its longer term trend. A lower score equates to lower revenue for miners.
Since 2014, the Puell multiple has gone below 0.50 only four times: during the previous market bottoms of 2015 and 2019, the Covid-induced crash of Spring 2020, and most recently in July 2022, according to Delphi Digital.
Delphi Digital notes that even as the Puell multiple seems to indicate a market bottom, other indicators must be used in tandem to conduct a meaningful analysis.