Author: Defx Intern

Cardano (ADA) is experiencing a shift in market sentiment as its bullish momentum fades and bears reclaim control at the critical $0.8119 level. Despite a promising attempt to push higher, ADA bulls are struggling to maintain their grip, with sellers stepping in and technical indicators hinting at growing weakness.

The failure to break through the 100-day Simple Moving Average (SMA) suggests that the initial bullish traction is losing steam, and the market is leaning towards a bearish outlook. The Relative Strength Index (RSI) is also showing signs of weakening momentum, further compounding the bearish sentiment.

Key Support Zones to Watch

As ADA faces mounting bearish pressure, the focus is shifting to crucial support zones that will determine its next move. The immediate support to watch is $0.6822, which could serve as a launching pad for another attempt at the upside if held. However, if this level is breached, the next major support at $0.5229 will come into play.

Should these key support levels fail to hold, ADA may face a more extended period of downward movement, with $0.55 emerging as the next line of defense. The ability of ADA to maintain these support zones will be critical in determining whether the altcoin can weather the bearish storm or if a deeper correction is on the horizon.

Market Implications

The shifting market sentiment and the struggle to maintain key support levels suggest that ADA may face increased volatility in the near term. Traders and investors should closely monitor these crucial price levels and be prepared for potential further declines if the bears continue to dominate.

However, if ADA manages to hold its ground and find strong support, it could present an opportunity for a bounce back and a potential trend reversal. The upcoming price action will provide valuable insights into the overall market sentiment and the strength of the bulls in defending these key levels.

Tags: Cardano, ADA, Crypto Market, Technical Analysis, Support Zones

Source: https://www.newsbtc.com/analysis/ada/ada-bullish-momentum-fades/

Indian crypto exchange WazirX has presented its creditors with a restructuring scheme to recover funds lost in a $230 million hack in July 2024. The exchange, once India’s largest by trading volume, was targeted by North Korean hacker group Lazarus, leading to a significant loss of user funds.

Creditor Vote Determines Payout Timeline

WazirX’s creditors now face a crucial decision that will determine the timeline for receiving their stolen crypto. If more than 75% of voting creditors approve the restructuring scheme, it will become effective in April 2025, allowing the platform to restart trading operations and begin initial payouts within 10 business days.

However, if the scheme fails to garner sufficient support, the process will move towards liquidation under Singapore’s Companies Act. This could result in a fire sale of assets and potentially lower compensation for creditors due to reduced asset values and delays in the process.

Recovery Plan Includes DEX Launch and Token Buyback

As part of its refund plan, WazirX intends to launch a decentralized exchange (DEX) and issue tradable recovery tokens. The platform aims to periodically buy back these tokens using profits and new revenue streams, gradually compensating affected users.

Criticism Surrounds WazirX’s Crisis Management

WazirX has faced criticism for its handling of the crisis, particularly regarding user communication and fund recovery processes. The exchange filed for a moratorium in Singapore courts and received approval for a restructuring plan in January 2025, narrowly avoiding total liquidation.

The outcome of the creditor vote will have significant implications for WazirX’s future and the recovery of user funds. As the situation unfolds, the crypto community will be closely watching to see if the exchange can successfully navigate this challenging period and restore user confidence.

Tags: WazirX, crypto hack, creditor recovery, restructuring plan, Lazarus Group

Source: https://www.coindesk.com/markets/2025/02/04/wazirx-says-accept-new-scheme-or-wait-until-2030-for-refunds-of-usd230m-hack

President Trump has signed an executive order to create an American sovereign wealth fund, sparking speculation about the possibility of a national Bitcoin reserve. The news briefly sent Bitcoin back above $102K after a recent dip due to Trump’s tariff wars with Mexico and Canada. As the crypto community awaits further details from Trump’s Crypto Czar, David Sacks, in an emergency conference, the potential impact on the market remains a hot topic.

Understanding Sovereign Wealth Funds and Bitcoin Reserves

A sovereign wealth fund is a government-owned investment vehicle that holds various assets to generate returns. While several U.S. states already operate such funds, the federal government has never held one. Notably, countries like Norway and Abu Dhabi have invested in Bitcoin and crypto projects through their sovereign wealth funds, contributing to their strong economic performance.

The inclusion of Bitcoin as a reserve asset would require significant legal changes, as strategic reserves typically hold low-risk assets. However, the possibility of a sovereign wealth fund investing in Bitcoin has piqued the interest of the crypto community, with Senator Cynthia Lummis hinting at the potential move in a recent tweet.

Market Implications and Outlook

If the U.S. government were to invest in Bitcoin or other cryptocurrencies through a sovereign wealth fund, it would add legitimacy to the market and potentially attract new capital inflows. This move could prolong the current bull run and have a positive impact on the long-term outlook for crypto assets.

As the crypto space awaits further clarification on the government’s plans, the market may experience increased volatility. Investors should closely monitor any official announcements and consider the potential risks and rewards associated with their crypto holdings.

Tags: Bitcoin reserve, sovereign wealth fund, crypto market impact, Bitcoin price, U.S. crypto regulation

Source: https://bitcoinist.com/is-a-bitcoin-reserve-coming-and-can-wepe-100x/

The ETF trading week kicked off with a notable shift in investor sentiment, as capital moved away from bitcoin ETFs and favored ether ETFs. On Monday, Feb. 3, bitcoin ETFs experienced an outflow of $235 million, ending a four-day streak of consecutive inflows. In contrast, ether ETFs attracted $83.5 million in inflows, suggesting a growing interest in Ethereum among institutional investors.

This shift in investor preference could be attributed to several factors, including the anticipation of the upcoming Ethereum Shanghai upgrade and the overall positive sentiment surrounding the Ethereum ecosystem. The Shanghai upgrade, set to take place in March 2025, is expected to introduce several improvements to the Ethereum network, such as reducing gas fees and enabling staking withdrawals.

Market Implications

• The outflow from bitcoin ETFs may indicate a short-term bearish sentiment towards the leading cryptocurrency, potentially leading to increased volatility in the Bitcoin market.
• The inflow into ether ETFs suggests a growing institutional interest in Ethereum, which could drive up the price of ETH in the near future.
• The shift in investor focus towards Ethereum may also lead to increased development activity and adoption of Ethereum-based applications and tokens.

As the crypto market continues to evolve, it will be crucial for investors to monitor the flow of capital between various cryptocurrency ETFs to gauge market sentiment and potential trends. The growing institutional interest in Ethereum, coupled with the anticipated Shanghai upgrade, may position ETH for a strong performance in the coming months.

Tags: Bitcoin ETFs, Ether ETFs, Institutional Investors, Ethereum Shanghai Upgrade, Crypto Market Sentiment

Source: https://news.bitcoin.com/bitcoin-etfs-see-outflow-of-235-million-ending-four-days-of-consecutive-inflows/

Ethereum experienced significant selling pressure on Monday, dipping below the $2,100 mark as whale wallets liquidated their positions. Two dormant wallets moved a total of $350 million worth of ETH to Bitfinex, triggering a 25% drop from the day’s opening price. The fall also impacted the DeFi lending platform Aave, which saw $200 million in liquidations, primarily in loans secured by Wrapped ETH.

However, this dip is being seen as a healthy market correction, similar to the one in August 2024. Ethereum managed to bounce back and close above its opening price on Monday, as whales bought the dip, accumulating a total of 50,429 ETH. This has kindled hopes of recovery among long-term holders, signaling a bullish path ahead for Ethereum.

Solana Stablecoins Gain Traction

While Ethereum faced a setback, Solana stablecoins have been making significant strides. The market cap of Solana stablecoins doubled in January, rising from $5.1 billion to $11.4 billion. This surge can be attributed to the growing popularity of meme coins on the Solana network, especially after the launch of a Solana-based memecoin by former U.S. President Donald Trump.

Circle’s USDC has emerged as the most sought-after stablecoin on the Solana chain, with a value of $9.25 billion, accounting for over 80% of all stablecoin transactions on the network. In contrast, Tether’s USDT dominates on Ethereum and Tron chains. The growth of stablecoins, coupled with the meme coin boost, suggests a bright future for altcoins on the Solana network.

Market Implications

The recent volatility in Ethereum’s price serves as a reminder of the market’s susceptibility to large whale movements. However, the quick recovery and accumulation by whales indicate a strong support level and bullish sentiment among long-term holders. This suggests that Ethereum may be poised for further growth in the coming weeks and months.

On the other hand, the rapid growth of Solana stablecoins and the increasing adoption of meme coins on the network highlight the potential for alternative blockchain platforms to gain market share. As more users and developers flock to Solana, it could emerge as a serious contender to Ethereum in the DeFi and stablecoin space.

Tags: Ethereum, Solana, Stablecoins, Crypto Market, DeFi

The XRP/BTC ratio is on the verge of breaking out of the upper Bollinger band on the monthly chart, a bullish signal not seen since 2017. This indicates a potential significant bull run for XRP in the near future, despite the grim outlook for alternative cryptocurrencies amidst the looming trade war between the U.S. and its major trading partners.

Key Market Implications

• The break above the upper Bollinger band suggests a bullish imbalance in the market, with prices likely to maintain the lead for several days in a high momentum pattern.
• Traders who track price patterns are expected to enter long positions once prices move past the upper band, further fueling the bullish sentiment.
• The reliability of the breakout is enhanced by the prolonged consolidation between the Bollinger bands prior to the breakout.

Technical Analysis

Bollinger bands are volatility bands placed plus two and minus two standard deviations above the 20-period simple moving average of an asset’s price. The XRP/BTC ratio’s move above the upper band is a significant bullish signal, especially considering the last time this occurred in April 2017, the ratio surged nearly 200%.

Tags: XRP, Ripple, Bollinger Bands, Technical Analysis, Cryptocurrency Market

Source: https://www.coindesk.com/markets/2025/02/04/xrp-teases-a-bollinger-band-breakout-against-bitcoin

TVM Ventures, an institution dedicated to supporting creators on the TON network, has unveiled a $100 million debut fund to invigorate the TON ecosystem. The fund aims to expand the network and help achieve the ambitious goal of onboarding 500 million onchain users by 2028.

The substantial investment from TVM Ventures is expected to attract more developers, entrepreneurs, and users to the TON ecosystem. By providing financial support and resources to promising projects, the fund will foster innovation and drive the growth of decentralized applications (dApps) on the network.

The TON ecosystem has been gaining traction since its launch, with its unique features such as instant hypercube routing, support for micropayments, and scalable infrastructure. The injection of capital from TVM Ventures is likely to accelerate the development of groundbreaking projects and solidify TON’s position as a leading blockchain platform.

As the race for mass adoption intensifies in the blockchain space, TON’s focus on scalability and user experience could give it a competitive edge. With the backing of TVM Ventures and the $100 million fund, the ecosystem is well-positioned to attract a wide range of users and become a significant player in the digital economy.

Tags: TON ecosystem, TVM Ventures, blockchain funding, dApp development, mass adoption

Source: https://news.bitcoin.com/tvm-ventures-unveils-100-million-debut-fund-for-the-ton-ecosystem/

The Commodity Futures Trading Commission (CFTC) has launched inquiries into Crypto.com and Kalshi Inc. regarding their recently introduced event contracts tied to the Super Bowl. The CFTC is reviewing these contracts to ensure they meet regulatory requirements and are not easily manipulable.

Crypto.com has expressed confidence in the legality of its event contracts and is prepared to cooperate with the CFTC’s inquiries. The company believes the CFTC is the appropriate regulator to ensure market integrity and prevent manipulation across all states.

Market Implications

The CFTC’s probe into these event contracts could have significant implications for the emerging market of sports-related derivatives. If the CFTC finds issues with the contracts, it could lead to enforcement actions or new regulations, potentially impacting the growth and adoption of these products.

The entry of major players like Crypto.com and Robinhood into this space highlights the potential for event contracts as a new asset class. However, the regulatory uncertainty surrounding these products may deter some investors and traders from participating until clearer guidelines are established.

Tags: CFTC, Crypto.com, Kalshi, event contracts, sports derivatives, regulation

Source: https://bitcoinist.com/cftcs-inquiry-crypto-com-kalshi-under-scrutiny/

Bitcoin is facing short-term uncertainty following President Trump’s announcement of new tariffs and a lack of retail dip-buying, according to the latest market outlook from Matrixport. Despite this, institutional demand for Bitcoin remains strong, driven by the growth of Bitcoin spot ETFs and the futures market.

Key market implications:

• Trump’s tariffs announcement has caused unexpected market reaction and short-term uncertainty for Bitcoin
• Lack of retail dip-buying contributing to Bitcoin’s price correction
• Strong institutional demand continues, supported by growth in Bitcoin spot ETFs and futures
• Bitcoin’s post-halving price action may be evolving in unexpected ways

Matrixport suggests that while short-term challenges persist, the underlying institutional interest in Bitcoin remains a positive long-term factor.

Tags: Bitcoin, market correction, Trump tariffs, liquidity, institutional demand

Original Article

Ethereum (ETH) has surged nearly 20% and reclaimed the $2,900 level after Eric Trump, son of former US President Donald Trump, endorsed the cryptocurrency on social media. Trump tweeted that now is “a great time to add $ETH,” fueling optimism among crypto investors.

The rally comes on the heels of a brief market downturn earlier this week sparked by concerns over potential US tariffs on Canada and Mexico. Trump’s temporary suspension of the tariffs boosted confidence in risk assets like crypto.

The Trump family has shown increasing involvement in digital assets through ventures like World Liberty Financial. The company recently transferred over $300M to Coinbase custody and acquired 1,826 ETH for $5M, in apparent preparation for launching a new DeFi lending protocol.

As institutional interest rises and Ethereum’s price rebounds, the second-largest cryptocurrency remains a focal point of the crypto market. The confluence of macroeconomic shifts, strategic investments, and political influence paint a dynamic picture for ETH’s future trajectory.

Tags: Ethereum, ETH, Donald Trump, Eric Trump, World Liberty Financial, DeFi, Coinbase