Invest ideasNews
17 May 2026, 09:49
XRP Ledger Activity Spikes to 2-Month High Amid $2B Breakthrough in Electricity Tokenization
XRP Ledger Activity Surges as $2B in Tokenized Electricity Fuels New Demand Santiment Intelligence data shows XRP briefly breaking above $1.54 for the first time in two months, a move that went beyond price action and lined up with a notable surge in XRP Ledger activity , pointing to a fresh wave of engagement from both retail users and institutional players. During the same 24-hour period, XRPL saw 48,453 active addresses, the highest since March 30, while new address creation climbed to 3,317, its strongest level since March 19. Therefore, these figures signal a clear resurgence in network participation, aligning with the renewed price momentum in the asset. Well, short-term spikes in activity are often fueled by FOMO during price rallies, but Santiment highlights that sustained network growth is a more reliable signal of long-term value. In essence, when more users are actively sending, receiving, and creating accounts on the ledger, it reflects deeper underlying demand that supports price action beyond short-lived momentum. XRPL’s Growing Utility: Whale Accumulation, $2B Tokenization, and Rising XRP Demand Large XRP holders have continued to accumulate, with whale wallets showing heightened activity over the same period. This mix of growing participation and concentrated buying strengthens the view that XRPL usage is expanding beyond short-term speculative trading cycles. Adding further weight to the narrative is the rapid rise of real-world asset tokenization on the XRP Ledger (XRPL). Reports suggest that over $2 billion worth of electricity has already been tokenized through initiatives such as Justoken, effectively converting physical energy output into digital financial instruments that can be issued, traded, and settled on-chain. This matters because XRPL activity is not neutral in terms of demand. Every transaction requires XRP for fees, while new accounts must maintain reserve balances. In addition, token creation and trading introduce trust lines that lock up additional XRP on the ledger. As tokenized assets expand, these small requirements accumulate into steady, structural demand embedded within the network’s usage. XRPL’s built-in decentralized exchange further deepens this dynamic by enabling tokenized commodities like electricity to be routed and exchanged with XRP often serving as a bridge asset in settlement flows. On the other hand, discussions continue around whether the XRP Ledger infrastructure, and assets such as RLUSD, could eventually streamline inefficiencies in legacy systems like SWIFT. While still largely speculative, the growing overlap between traditional finance and tokenized settlement rails is becoming increasingly difficult to dismiss.
17 May 2026, 07:00
Gemini Posts $50M Q1 Revenue, Gets $100M Bitcoin Investment
Gemini reported Q1 2026 revenue of $50.3 million, up 42% year-over-year. Winklevoss Capital Fund invested $100 million in the exchange at $14 per share, paid in Bitcoin.
17 May 2026, 00:46
Trump deepens crypto exposure with Coinbase and Strategy investments
U.S. President Donald Trump and his family have further expanded their indirect exposure to the cryptocurrency sector. New financial disclosures reveal increased investments tied to major crypto-linked equities, including Coinbase Global and Strategy (formerly MicroStrategy). These shares were acquired in the first quarter of 2026, according to a financial disclosure submitted to the US Office of Government Ethics (OGE). The OGE Form 278-T was released to the public this week. It revealed thousands of stock trades made in the names of Trump and his family so far this year. This filing covers the collective assets and investments of the President, First Lady Melania Trump, and their dependent children. The relevant authorities conducting the investigation found that the president’s children control the family’s assets. Trump family’s major investments in key crypto firms hit the headlines The OGE document outlined nine purchases of Coinbase Global Inc. Class A Common Stock. On February 10, 2026, the biggest single transaction on Coinbase occurred. This purchase was valued between $100,001 and $250,000. Trump’s family also made smaller Coinbase share purchases throughout the quarter. Apart from Coinbase, they also allocated significant funds to MARA Holdings . MARA is one of the largest publicly traded Bitcoin miners. It is also a major corporate holder of Bitcoin. The MARA purchases were minor, similar to Coinbase’s. They consistently ranged from $15,001 to $50,000. The March 20, 2026, 113-page filing lists one transaction on page 35. In the first quarter, MARA reported $1.26 billion in net loss. Analysts claimed that the company intends to redirect its strategic focus to AI and data center infrastructure. In the meantime, the OGE Form 278-T illustrated eight transactions involving the buying and selling activities in Strategy. The most significant purchase was executed on February 12. Its value fell within the $50,001 to $100,000 range. The largest sale occurred on January 12, ranging from $15,001 and $50,000. Strategy is the largest corporate holder of Bitcoin worldwide. The company has more than 818,000 BTC on its balance sheet. All eight transactions were related to Strategy’s Class A Common Stock. With significant investments in crypto firms, Trump’s family generated more than $1 billion in profits by October 2025. Even so, a representative for the Trump Organization insisted that the trades mentioned in these ethics filings do not involve the president or his family. “President Trump’s investments are managed solely through fully discretionary accounts by independent financial institutions that have complete control over all investment decisions,” the spokesperson contended. “Neither President Trump nor his family nor the Trump Organization is involved in choosing or approving specific investments.” A major issue during the Clarity Act debates has been how to restrict the president’s personal crypto ventures. The Clarity Act is a legislation advanced in May 2026 to create a comprehensive regulatory framework for digital assets. Nonetheless, although ethical guidelines for the bill have not yet been agreed upon, the Senate Banking Committee passed it on Thursday, May 14, 2026, by a 15-9 vote. Crypto companies adopt a new strategy in their operations While investigations into Trump’s involvement in the crypto industry intensify, Cantor Fitzgerald identifies prediction markets as a high-growth ‘secret weapon’ for Coinbase and Robinhood. Cantor Fitzgerald is a leading global financial services firm and investment bank. This finding indicates that investors are ignoring weak Q1 crypto trading and focusing instead on future product launches. One analyst from Cantor Fitzgerald stated that, “investors are increasingly viewing the quarterly results as outdated, with more attention now on future demand trends and the product roadmap.” This includes new offerings such as prediction markets. Both firms are expected to report poor results for Q1 of this year amid declines in cryptocurrency prices and a drop in trading activity. Bitcoin and Ether (ETH) prices dropped by approximately 23% and 29% this quarter, driving down exchange volumes . A third-party data also noted a deceleration in trading activity over the quarter. Coinbase’s volumes fell to $54 billion in March from around $66 billion in January. Cantor forecasted that Coinbase trading volumes will be $35 billion for retail and $167 billion for consumers and institutions. This prediction fails to meet consensus expectations on Wall Street. However, Cantor Fitzgerald analyst Ramsey El-Assal maintained his “overweight” rating and bumped his price target to $250. He cited positive market sentiment and strong, long-term growth drivers. If you're reading this, you’re already ahead. Stay there with our newsletter .
16 May 2026, 22:18
WhiteBIT price prediction 2026-2032: Can WBT coin sustain growth?
Crypto exchange tokens historically act as leveraged proxies for platform growth. When exchanges expand their user base, trading volume, product offerings, and geographical reach, native tokens often capture part of that upside. WBT is the native coin of the WhiteBIT exchange and is used across the WhiteBIT broader ecosystem. Hold the coin for discounted trading fees, free withdrawals on the Ethereum network, and access to the exchange’s new token launchpad, among other perks. The coin also serves as Whitechain’s native currency, used to pay blockchain fees. In this article, we’ll analyze WhiteBIT price prediction for 2026-2032. Our analysis also helps determine whether WBT coin follows the trajectory of leading exchange tokens, or whether its valuation depends heavily on exchange-specific performance. What is the WhiteBIT coin (WBT)? WhiteBIT coin, abbreviated WBT, was launched in August 2022 in an Initial Exchange Offering (IEO). The IEO was conducted as part of the launch of WhiteBIT’s native coin. The operation raised $88.48 million across multiple rounds. The coin’s initial listing price was $1.90. As of May 2026, WBT had a circulating supply of ~213 million coins and a market capitalization of over $12 billion, ranking among the top 15 crypto assets. WhiteBIT is a cryptocurrency exchange with over 900 trading pairs and 350 assets. The exchange entails more than crypto spot and margin trading. Other services are WhiteBIT Earn and Crypto Borrow. Their product ecosystem is constantly expanding, increasing the utility of the WBT coin. Core use cases of the WBT coin within the WhiteBIT ecosystem include: Trading fee discounts Perks such as free ERC20 withdrawals Launchpad access Ecosystem participation Increased referral rate WBT tokenomics and supply structure WBT has a total supply of 400,000,000 coins on the Whitechain, Ethereum, and Tron networks. At launch, 54 million coins were sold in a private sale at $1.62 per coin. The coins were vested over eight months with scheduled releases in the last five months. Another 1 million coins were distributed to users via the WhiteBit launchpad during an IEO. Another 25 million coins were burned, permanently removing them from circulation. 200 million coins were vested over 3 years with gradual unlocks to support ecosystem activity. The remaining 120 million coins were available at launch for operational activities, including development, insurance, security fund, liquidity provision, and crypto lending. WBT token burn Following the launch of the Whitechain network, WBT was burned in its respective networks (Ethereum and Tron), and an equivalent number of coins were issued on Whitechain’s genesis block. WhiteBIT then introduced a burn mechanism , committed to removing half of the total supply, i.e., 200 million WBT coins from circulation through weekly buy-backs. 33% of trading fees and 5% of other income-generating activity would be used for the buy-backs. So far, the program has removed over 20 million WBT coins from circulation. The whitepaper and WBT’s tokenomics do not allow the issuance of new coins. Looking back, 81.5 million coins were unlocked on March 13, 2026. The coins account for about 28% of the total supply, approximately $4 billion in value. The unlock had little impact on price. WBT is listed on multiple exchanges, including WhiteBIT, Bitfinex, HTX, and MEXC. Historical price performance 2022-2023: Bear market and reset WhiteBIT launched its native coin, WBT, in 2022 amid a broader market downturn following the reversal of the 2021 bull run. Early market momentum saw WBT rise from its listing price at $5.52 to a peak of $14.41 in October. Terra LUNA, Celsius, and FTX exchange failures shook investor confidence in the last quarter of 2022. Negative market sentiment triggered a reversal, and on February 13, 2023, WBT hit its all-time low at $3.06. WBT spent most of 2023 grinding between $3 and $6. 2024-2025: Recovery and institutional interest 2024 was an optimistic year for the crypto industry, driven by the historic Bitcoin halving and ETF approvals that drew institutional interest. In 2024, WBT climbed steadily, closing the year at around $25, roughly 4x its start-of-year price. By June 2025, WBT had risen to $48. In June, the WhiteBIT exchange became an official sleeve partner of the Juventus Football Club for three seasons. On December 10, 2025, it reached an all-time high of $64.11. At about the same time, WBT was officially included in five S&P Dow Jones crypto indices, a signal of the industry’s maturity. WhiteBIT officially launched its U.S. platforms as an independent, fully regulated entity. WhiteBIT, Juventus official crypto exchange partner 2026: Market correction In 2026, we see a market with less speculative hype, focusing more on utility, compliance, and integration with traditional finance. Exchange tokens are generally bearish. WBT corrected from the 2025 peak and trades at about $60. Key factors that could influence the WBT price Exchange growth and trending volume WBT’s value is influenced by its tokenomics, and the exchange has also made strategic bets that directly affect its visibility and credibility. WhiteBIT is the largest European crypto exchange by traffic. It is part of the WhiteBIT group, which serves over 35 million users worldwide and directly affects demand for WBT. The exchange’s growth is a major catalyst for its performance to a new price record. Notable recent events on WhiteBIT include: Juventus partnership Saudi Arabia partnership US launch (Coming soon) Entry into Latam with Argentina and Brazil registrations S&P crypto indices inclusion Under the Saudi partnership, WhiteBIT signed a strategic agreement with Durrah AlFodah Holding, represented by His Highness Prince Naif Bin Abdullah Bin Saud Bin Abdulaziz Al Saud, to advance the kingdom’s data infrastructure and blockchain operations, and CBDC framework development. Durrah AlFodah Holding would facilitate WhiteBIT’s entry into Saudi Arabia, while WhiteBIT would provide technological expertise and infrastructure design. WhiteBIT is actively expanding its product offerings. Recently, they launched WB Checks , a tool for instant, secure, fee-free crypto transfers between users without an account. The tool simplifies crypto transactions by bypassing standard transfer limitations. Coin utility expansion WBT coin is extensively used in WhiteBIT’s growing product offerings. New utilities create additional demand. Here is an example. Soul Drop is a reward distribution marketing activity for users with WB Soul, a Web3 identity on the Whitechain network. Users hold WBT for rewards in WBT. Growing utility for the WBT coin increases demand, and with a new US market anticipated, we can expect positive price action. Market cycles An analysis of crypto market cycles shows price trends tend to mimic Bitcoin to a certain degree. In the last quarter of 2025 (Q4), Bitcoin (BTC) and several other digital assets, including WBT and BNB, registered significant all-time highs. The same can be said of previous Bitcoin halvings, which are typically associated with positive market sentiment. The chart shows how top exchange-based tokens have changed value over time, highlighting their performance across different market cycles. Note how their performance is correlated. Top exchange-based tokens coins performance chart by CoinGecko Regulatory environment Cryptocurrency exchanges operate in a legal grey area across many jurisdictions. The problem arises from the lack of proper laws or licenses for crypto activities, including payments and trading. Restrictions for crypto products also vary across regions where they are regulated, making compliance difficult. Exchange tokens are directly exposed to regulatory tariffs. As WhiteBIT operations expand into new markets, new restrictions or licensing requirements can affect market sentiment, potentially affecting WBT. Competitive landscape The cryptocurrency exchange landscape is highly competitive, forcing exchanges to pivot to remain unique. Exchanges are now adopting automation and artificial intelligence technology to offer users a more fulfilling experience. The performance of exchange-based tokens can be correlated with that of the exchanges. Binance coin, for instance, tops the list of exchange tokens by market capitalization, with WBT coming in second place. Similar comparisons can be drawn for trading volumes or registered users, showing stiff competition across exchanges. WBT’s market share has steadily grown since January, from 2.50% to 9.25% in May, reflecting strong adoption momentum. Top exchange-based tokens coins dominance chart by CoinGecko WBT price analysis: Overview Cryptocurrency WhiteBIT Ticker Symbol WBT Current WhiteBIT coin price $57.60 Price change 24H -1.56% Market cap $12.26B Circulating supply 212M Trading volume 24h $39M All-time high $64.11 on Dec 10, 2025 All-time low $3.06 on Feb 13, 2023 WBT price prediction: Technical analysis Metric Value Fear & Greed Index 31 (Fear) Market Sentiment Bearish Volatility 3.81% (Medium) Green Days 18/30 (60%) 50-Day SMA $55.10 200-Day SMA $54.75 14-Day RSI 60.06 WBT/USD 1-day chart analysis WBTUSD chart by TradingView WBT on the daily chart shows a recovery this month after bouncing off support at $50.40. Since then, the price has gradually risen, forming a sequence of higher highs and higher lows. The rise, however, is yet to recover to previous highs. WBT is currently trading around $57.60, after facing short-term resistance at $60. The market structure and MACD suggest rising selling pressure as the price continues to drop from the top of the range. If support fails, the price could decline toward $53.51. However, a sustained rebound above $55.00 could trigger a short-term bull run above the $60.00 resistance zone. WBT price analysis 4-hour chart analysis WBTUSD chart by TradingView WBT on the 4-hour chart shows a continued decline following its rejection at $60.00, after a prolonged bullish trend. Price action has been falling as shown by the William Alligator moving averages. WBT is currently trading around $57.60 and moving along key moving averages. If the buying momentum rises, a recovery toward the $58.50–$62.20 region could occur. However, failure to hold support may trigger a bear run. WBT technical indicators: Levels and action Daily Simple Moving Average (SMA) Period Value ($) Action SMA 3 58.91 SELL SMA 5 59.47 SELL SMA 10 59.42 SELL SMA 21 57.81 SELL SMA 50 55.10 BUY SMA 100 53.85 BUY SMA 200 54.75 BUY Daily Exponential Moving Average (EMA) Period Value ($) Action EMA 3 59.17 SELL EMA 5 59.22 SELL EMA 10 59.04 SELL EMA 21 58.05 SELL EMA 50 56.24 BUY EMA 100 54.94 BUY EMA 200 52.63 BUY What to expect from the WhiteBIT price analysis next? WhiteBIT Coin is down over the last 24 hours, in line with the broader market correction during that period. WBT slightly underperformed the broader market while showing strong correlation with Bitcoin, which fell 1.38%. Zoomed out, WBT is pushing higher after bouncing off support levels at $50.40. “With waning buying volume and cautious sentiment, traders are leaning risk‑averse, pulling WBT back from the $60.00 resistance zone. Recent news on WhiteBIT WhiteBIT is among 11 Virtual Asset Service Providers (VASPs) admitted by the Securities and Exchange Commission of Ghana into its regulatory sandbox. WhiteBIT has extended its partnership agreement with FC Barcelona for a further five years, until 2030. WBT price prediction 2026–2032 WhiteBIT coin price predictions depend on multiple macro and exchange-specific variables. In this section, we are going to explore bearish, base, and bullish case scenarios of WBT coin for the period 2026-2032. WhiteBIT price prediction 2026 The year 2026 is expected to see bullish momentum if Bitcoin holds $100K as strong support. According to the WBT price movements, the maximum price is expected to be between $70 and $90. The key driver of this bullish scenario is WhiteBIT’s rapid expansion of its exchange, which is boosting adoption. On the other hand, the minimum price of WBT might range from $30 to $40 if geopolitical tensions between Iran and the US rise. The March token unlock had little impact on prices. However, we expect a base price range of $40-$60 as geopolitical tensions subside in the coming months. WBT price prediction 2027 The WhiteBIT key price levels may climb even higher in 2027. According to our prediction, bullish developments such as WhiteBIT’s entry into the US and EU markets will push the WBT price toward $150-$180. However, new market regulations might trigger a bearish scenario for WBT, with a price range of around $70-$100. WBT may consolidate as new events roll out in 2027, with a predicted base price range of around $110-$140. WBT price prediction 2028 According to our WhiteBIT coin forecast, the maximum price of WBT will range from $300 to $380.The increased coin burn should induce deflationary pressure and directly affect the WBT price in a bullish way. On the other hand, the minimum price of WBT is expected to range from $160 to $220. We predict the WBT price will consolidate between $240 and $280 in 2028. WhiteBIT (WBT) price prediction 2029 According to WhiteBIT’s 2029 price forecast, the price will range from $460 to $550. The minimum price is expected to range from $290 to $320, while the average price might hover between $320 and $400. WBT prediction 2030 In a bullish case, the WhiteBIT coin price forecast for 2030 indicates a maximum price range of $600-$750. On the other hand, the minimum price is expected to range from $400 to $460. The average price is expected to range from $490 to $550. WhiteBIT price prediction 2031 If buying demand continues to rise, WBT will trade higher in 2031. The maximum price is expected to range from $800 to $1,100. The average price range for the year will be around $650-$750. If sellers take control, the minimum price of WBT coin will hover around $510-$590. WhiteBIT price prediction 2032 The year 2032 will be marked by significant volatility. According to Cryptopolitan’s WhiteBIT coin WBT price prediction, the maximum price will range from $1,230 to $1,480. However, a rejection on the price chart could push WBT toward the $860- $950 zone. The average price of WhiteBIT coin is expected to range from $1,080 to $1,150. Is WBT a good investment? Evaluating WBT as an investment requires weighing both its strengths and risks. On the positive side, WBT has deflationary tokenomics that should halve the total supply. WBT is not a standalone coin; its affiliation with the WhiteBIT exchange means it stands to gain as the exchange’s product offerings and regional expansion continue to grow. However, risks remain. Centralization risk means WBT’s fortunes are closely tied to a single exchange, creating dependency. The regulatory landscape is also uncertain in many jurisdictions, and the geopolitical landscape continues to shift unpredictably, adding further volatility. Ultimately, WBT may appeal to investors seeking exchange-linked exposure, but it requires careful consideration of risk tolerance. Crypto investments are high risk; therefore, careful consideration of your risk tolerance is important. Risks to consider Exchange tokens are correlated to business health. Here are some key factors to consider when investing in an exchange-linked coin like WBT. Exchange security risks In 2025, cryptocurrency exchanges accounted for the largest loss following a crypto hack. Bybit, the crypto exchange, alone lost $1.5 billion. WhiteBIT maintains a zero hack history. Other risks include centralized risks like mismanagement and money laundering. Token unlock pressure Token unlock pressure increases the token supply in the market, which, on paper, would sustain selling pressure. In the case of WBT, previous unlocks have had little impact on its price. Market-wide downturns Historically, crypto markets have correlated with Bitcoin, resulting in crypto-wide market cycles. Bullish and bearish market cycles often define the trend of most cryptocurrencies, including exchange-linked ones. Liquidity concentration Liquidity concentration within a few parties risks systemic vulnerability, amplifying market manipulation and destabilizing price discovery. Concentration risks high volatility if large holders, or whales, choose to liquidate their holdings. Conclusion WBT’s future price depends primarily on WhiteBIT’s long-term growth trajectory and its ability to sustain token utility within a competitive exchange landscape. Exchange tokens can outperform in bull markets – but they carry exchange-specific risk that broader crypto assets may not. The WhiteBIT (WBT) price prediction will rely heavily on market trends, the geopolitical landscape, and regulatory developments. Investor sentiment and institutional participation will further shape its trajectory. All factors constant, WBT will maintain a bullish outlook.
16 May 2026, 21:06
Trump Adds Coinbase and Bitcoin Stocks to Portfolio
A federal financial disclosure filed by Donald Trump on May 14 shows his portfolio purchased shares of MARA Holdings, Coinbase, and Strategy between January and March 2026. Out of more than 3,600 transactions listed across 113 pages, those three were the only crypto-related names in the entire filing. What the Filing Actually Shows The document in question is an OGE Form 278-T, the type of periodic transaction report that senior government officials are required to file, with the MARA purchase appearing at line 1106, dated March 30, 2026, in the $15,001 to $50,000 range. Normally, the form does not disclose exact dollar amounts for individual transactions, only brackets. Furthermore, the filing noted that the holdings are managed by a third-party financial institution, not by Trump directly, which matters when reading anything into the selections. That caveat aside, the composition of the crypto slices is worth paying attention to. MARA Holdings is the largest publicly traded Bitcoin miner in the United States by market cap. Coinbase is the dominant US crypto exchange and one of the few crypto companies with a long trading history as a public company. Strategy holds more Bitcoin on its balance sheet than any other publicly traded firm. These are not obscure picks, but rather, they are three of the most recognizable institutional proxies for Bitcoin exposure available on US exchanges. The Trump family also bought shares in Nvidia, whose CEO Jensen Huang was part of the entourage that accompanied the president on his first visit to China since 2017. Records also show they put money in Microsoft, Oracle, and Boeing, spending between $1 million and $5 million on those stocks. Trump-Linked Crypto Ventures Under Scrutiny The US president’s financial ties to the crypto industry have been under scrutiny for some time now, with one of them, American Bitcoin, a mining company backed by his family members, reporting an $82 million net loss in Q1 2026 despite mining a record 817 BTC during that period. CEO Mike Ho framed it as an accounting issue rather than an operational one. Meanwhile, World Liberty Financial has had a rougher run. Its native WLFI token hit an all-time low late last month after a 16% single-day drop, with the asset trading around $0.05 at the time, well below its peak near $0.33. The project has faced additional pressure from a lawsuit by Tron founder Justin Sun and a Wall Street Journal report linking one of its partners to individuals sanctioned by the US Treasury in connection with alleged fraud operations in Southeast Asia. Further, yesterday, Massachusetts Senator Elizabeth Warren asked the SEC to investigate World Liberty, accusing it of misleading investors and/or violating securities laws when it recently borrowed $75 million using WLFI as collateral. The post Trump Adds Coinbase and Bitcoin Stocks to Portfolio appeared first on CryptoPotato .
16 May 2026, 21:00
Why Bitcoin Price Could Be Forming A Consolidation Structure Around $80,000
The Bitcoin price has surged towards the $80,000 mark over the past few weeks, signaling an ongoing resurgence from the bear-market lows observed in the first quarter of 2026. However, the premier cryptocurrency appears to have run out of the bullish impetus to sustain its current recovery, as it hovers around a psychological price level. Interestingly, the latest on-chain data shows that the Bitcoin price could be forming a consolidation range around the $80,000 region. Weak Coinbase Demand, Zero Binance Sell Pressure Forms ‘Equilibrium Of Apathy’: Analyst In a May 15 post on the social media platform X, market analyst CryptoOnchain revealed that a “Low-Velocity Consolidation” setup seems to be forming in the current Bitcoin price structure. This evaluation is based on a confluence of three on-chain signals over the past couple of weeks. Related Reading: Ethereum Network Registers Strongest Profit Realization In Weeks — What This Means Firstly, CryptoOnchain shared that the Network Value to Transaction metric has been in an uptrend in recent weeks. This indicator measures the ratio of a cryptocurrency’s (Bitcoin, in this case) market capitalization to transaction volume, offering insight into whether an asset is over- or undervalued. When this metric is high (as it currently is), it means that the Bitcoin price growth is no longer being supported by actual network activity (or increasing transaction value). Hence, a further expansion in BTC’s price, especially in the short term, might not be feasible. CryptoOnchain noted that, at the same time, there has been a significant Bitcoin supply drought on Binance, the world’s largest cryptocurrency exchange by trading volume. The analyst stated that the Binance Inflow CDD metric has dropped 99.5% since April, with Bitcoin long-term holders showing a reluctance to sell their assets. The third metric highlighted by CryptoOnchain is the Coinbase Premium, which measures the demand from institutional investors in the United States. According to data from CryptoQuant, there appears to be some apathy among US investors, as the Coinbase Premium has remained largely negative in recent weeks. CryptoOnchain explained that this combination of weak demand and zero sell pressure from two of the largest exchanges creates an “Equilibrium of Apathy.” These illiquid conditions, compounded by low Binance leverage, are often precursors to a volatility squeeze, the on-chain pundit concluded. Could This Volatility Squeeze Trigger The Next Bitcoin Price Move? For context, a volatility squeeze is a technical analysis pattern (shown by contracting Bollinger Bands) that signals a period of consolidation. What’s interesting is that this technical pattern has historically preceded significant price breakouts. Hence, from an optimistic perspective, the current period of inactivity in the Bitcoin price could simply be the “calm before the storm.” As of this writing, the price of BTC sits just above the $79,000 mark, reflecting an almost 3% decline in the past day. Related Reading: Bitcoin Fails $82,000 Breakout Three Times As Short-Term Holders Sell Featured image from iStock, chart from TradingView
