Bitcoin price lost momentum following the rally occurred over past week, BSV plummeted, sufferings massive 51% attack
Bitcoin price is trading around $38,000 at press time and is down about 4% over the past week. Ongoing regulatory concerns in the US and China have kept some BTC buyers on the sidelines, with lower support seen around $34,000 to $36,000.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price is declining as regulatory concerns rise; ETH is holding support
Bitcoin saw a gain of more than 20% while the entire market followed suit and showed massive gains across the board. Bitcoin has spent nine consecutive days closing in the green for the first time in a decade.
As the cryptocurrency saw its momentum slow down, the price went through various drops that sent the price down. After it rallied more than $42,000 for the first time in over a month, with this pause, it looks like the rally has come to an end. Many people think that BTC’s price appears to have faked out investors with its move to $42,000 last week and now struggles to hold above $38,000. But on-chain data shows Bitcoin is rising in other areas.
On-chain data analysis shows that daily transaction volume has increased over the past week. Up 94% to $9.1 billion per day from $4.7 billion per day. This shows that while the price may have slowed down, the volume has not.
A report from Santiment shows that Bitcoin large addresses continue to show interesting patterns in how supply distributions are changing over time and the number of addresses fluctuating in each tier. 10 – 1,000 BTC addresses (144.97k addresses) are at their highest point since April.
The trends show that the wallets have been accumulating coins since May, after the market crash that saw assets losing up to 50% of their value in a short period of time. Wallets holding less than 10 BTC have continuously increased their holdings as the market has dipped and dived through the months.
Bitcoin price continues to struggle in the $38,000 range after the drop earlier in the week. Momentum continues to stay low in the market while some altcoins look like are trying to break away from the leading cryptocurrency.
Terra (LUNA) is one such project that has managed to buck Bitcoin’s downtrend and climb higher since the start of August. LUNA price rallied 162% from a low at $5.53 on July 20 to an intraday high at $14.51 on August 3 as its 24-hour trading volume increased from $137 million to $774 million.
It is found that there are three reasons to explain this increase because Terra is expanding its ecosystem more. Below is a rapidly expanding list of partners and projects launching on the blockchain.
Terra ecosystem | Source: Smart Stake
In addition, the other two reasons are the addition of a wrapped form of Ether (ETH) to Anchor protocol which brings Ether staking rewards to the Terra ecosystem, and the protocol’s tokenomics which helps control the circulating supply of LUNA and UST.
At press time, LUNA is changing hands at $14.59, 20% increase in the last 24 hours.
Meanwhile, ETH is still trading in the $2,500 zone, showing no signs of bullishness despite the approaching hard fork. At now, Ethereum’s London upgrade is set to activate on Thursday, according to the countdown available on Ethereum.org. “The London upgrade is scheduled to go live on Ethereum in August 2021, on block 12,965,000,” Ethereum.org reads. “It will introduce EIP-1559, which reforms the transaction fee market, along with changes to how gas refunds are handled and the Ice Age schedule.”
EIP-1559 is scheduled to go live this week and I still see a lot of wrong takes on its impact. Remember:
— korpi (@korpi87) August 2, 2021
Bitcoin SV (BSV) has reportedly suffered a “massive” 51% attack
BSV reportedly suffered a “massive” 51% attack beginning around 11:45 am Tuesday, resulting in up to three versions of the chain being mined simultaneously. According to Coin Metrics, its FARUM risk management platform had identified the 51% attack.
At the time of writing, it was unclear whether the attack had ended or whether the perpetrator was just taking a break. Additionally, the Bitcoin Association recommends that node operators mark the counterfeit chain as invalid. This will immediately return your node to the chain supported by honest miners and lock the attacker’s chain out.
BSV/USD 4-hour chart | Source: TradingView
At the time of writing, BSV is trading around $136.68, down more than 5% in the last 24 hours.
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