But far from entering a death spiral, the XRP market has shown surprising resilience, especially since three of the world’s biggest cryptocurrency exchanges – Binance, Huobi and OKEx, all with roots in China – have continued to maintain pairings with the digital asset, Shen reported. There’s been significant traffic in trades between XRP and the Korean won, as well as with tether (USDT), a dollar-linked stablecoin that’s popular with Chinese traders.
“Unlike Coinbase or other ‘regulated’ exchanges, Korean and [other] Asian exchanges do not need to care that much of what the SEC does, and investors in Asia are less sensitive about the news,” said Sinhae Lee, partner at Shanghai-based blockchain consulting firm Block72.
“No one really knows what’s going to happen to it,” Denis Vinokourov, head of research for the crypto prime broker Bequant, said last week in interview. “It’s still holding onto a decent market cap for a company that’s supposed to be on its knees.”
Bitcoin fell sharply early on Monday, after failing to establish a foothold above $40,000 over the weekend.
Over the past 24 hours, the cryptocurrency declined by more than $8,000 to $32,400, a drop of more than 20% from levels above $40,800 late Sunday.
“Hefty spot selling against an over-levered market caused the price drop,” trader and analyst Alex Kruger told CoinDesk, adding that it is unclear whether it was miner selling or macro traders liquidating positions.
Data provided by South Korea-based analytics firm CryptoQuant suggests miner selling did contribute to the price drop.
The 30-day average of Miners’ Position Index – a gauge of how rapidly bitcoin miners are moving to liquidate inventories on cryptocurrency exchanges – rose to 2.20 on Sunday, the highest level since July 2019. A reading above 2.00 indicates miners are selling.
EOS (EOS): Serial blockchain entrepreneur Dan Larimer leaves Block.one, the company that raised $4B in 2018 ICO to build the software behind the EOS blockchain (CoinDesk)
Tron (TRX): Tron-owned video platform criticized for reportedly allowing right extremists to livestream the deadly riot at the U.S. Capitol building last week (CoinDesk)
Wrapped bitcoin (wBTC): “Burns” outpaced minting in December, first time in project’s history, as yields diminished in DeFi (CoinDesk)
U.K.’s FCA warns investors of high-risk crypto investments and scams (CoinDesk)
Long-desired bitcoin ETF could actually hurt price in short term, as Grayscale Bitcoin Trust (GBTC) premium arbitrage unwinds, JPMorgan says (CoinDesk) (EDITOR’S NOTE: Grayscale is a unit of Digital Currency Group, which also owns CoinDesk)
Israeli trading platform eToro says its so overwhelmed with demand from newcomers who want to trade cryptocurrencies that it has boosted minimum deposit for new users to $1K from $200 (CoinDesk)