Crypto friends, the crypto market has been incredibly lively lately! From ETH's strong breakthrough of $4000, returning to the bull market spotlight, to Shiba Inu (SHIB) burn rates soaring 1800%, and Dogecoin (DOGE) being wildly accumulated by whales, as well as discussions on Bitcoin (BTC) challenging the dollar's dominant position, the entire market has been full of twists and turns, with excitement continuing. 📈
Today, let's delve into the major hot topics in the crypto world these days—whether you're a technical or community enthusiast, this article will help you catch the key points, clarify the trends, and don't miss out!
Is ETH's return to the $4000 mark a sign of a strong bull market?
First, let's talk about the main character, Ethereum (ETH). Last night at 21:51, ETH finally broke through the $4000 mark, with a 24-hour increase of 3.78%. Around 3 AM, it even surged to $4071, currently stabilizing around $4030. This marks ETH's return to the $4000 level after 7 months and 23 days, which is exciting!
Behind this rebound, many believe it was driven by the strong performance of US stocks— all three major US stock indices rose, with the Nasdaq even reaching a new historical high. Apple rose over 4%, with a weekly increase of 13%, and Google, Tesla, and NVIDIA also performed well. The overall market sentiment is high, injecting a lot of vitality into cryptocurrencies.
Last December, the crypto bull market triggered by Trump's election trapped many investors, but in this market, they are gradually being released from their positions. Many early holders finally breathed a sigh of relief: 'Finally, I've waited for you, glad I didn't give up!' This sentiment resonates with many, as the sweetness of a bull market is always worth cherishing.
However, it is worth noting that ETH's recent rise has broken many technical indicators that originally indicated bearish trends, suggesting that relying solely on traditional technical analysis indicators makes it difficult to accurately judge the market. After all, technical indicators often cannot reflect the net inflow of large funds from outside the market—which is the real driving force behind the market trends.
Currently, the market cap of Ethereum has exceeded $486.9 billion, surpassing Vanguard Group and ExxonMobil, ranking 27th among global assets. It truly deserves to be called the 'pillar' of the crypto world.
VK voices cautious optimism regarding the Ethereum treasury, highlighting the risks behind this attitude.
Speaking of ETH, we must mention founder Vitalik Buterin. Recently, he talked about the current situation and future of the Ethereum treasury (ETH Treasury) in an interview.
Buterin gave a positive evaluation of the Ethereum asset management company, stating that ETH, as part of the company's finances, is a 'very valuable asset' that can bring more options, which is good news for the ecosystem! 👍
However, Vitalik also reminded everyone: don't overdo it! He said if someone tells him three years later that ETH collapsed due to treasury bonds, it might be because leverage was used too aggressively, turning it into a 'dangerous game'.
How large is the ETH treasury exactly?
As of now, more than 60 players have accumulated 3 million ETH, worth about $11.8 billion, accounting for nearly 2.5% of the total supply! That's not a small number.
The largest player is BitMine Immersion Technologies (BMNR), holding 833,000 ETH, worth about $3.26 billion; followed by SharpLinK Gaming (SBET) with 522,000 ETH, valued at $2 billion; The Ether Machine (DYNX) also has $1.35 billion worth of ETH.
The power of this treasury is on par with the demand for ETH ETFs in the market, and even Standard Chartered Bank is optimistic, believing that the treasury is more worthy of investment than ETFs, as it can also earn staking rewards, providing double benefits!
How to view investment value? mNAV tells you the answer.
Standard Chartered Bank also analyzed the price-to-net-asset-value ratio (mNAV) of these treasury companies, which is a measure of the net asset value compared to stock prices. Simply put:
An mNAV above 1 indicates that the company is being valued at a premium by the market, and investors are optimistic about future growth.
Below 1 may indicate market concerns over short-term risks, or it could be a buying opportunity to snag a bargain.
The mNAV of BMNR is 1.47, and SBET is 1.15, indicating that their valuations are reasonable at current prices and are worth watching as potential investment targets when ETH rises.
However, the market sentiment seems to be shifting...
Although the treasury looks 'strong,' the selling pressure in the ETH market is also quietly increasing. In recent days, as ETH prices approached $4000, funds from exchanges began to accelerate outflows.
This is different from last week's rebound period when the inflow of funds was relatively stable. Now, if profit-taking accelerates, ETH's price is likely to oscillate around $4000 for a while, and it won't soar immediately. The market sentiment remains elusive, with risks and opportunities coexisting.
With a burn rate of 1,800%, can SHIB's price really sustain its rebound?
After discussing ETH, our 'cute little coin' Shiba Inu (SHIB) is also not to be outdone. Recently, SHIB's burn rate surged to 1823%, with prices rising for three consecutive days, peaking at $0.00001315, an increase of nearly 30% from this year's low.
The explosive growth of the burn rate is usually seen as a positive sign, as it reduces circulating supply and puts deflationary pressure on prices. However, do not celebrate too early; Shiba's performance is still struggling.
However, the story of Shiba Inu coin is always full of ups and downs; with the community's activity and the project's continuous iteration, there is still potential waiting to be unleashed. After all, like Ethereum, it also benefits from the overall bull market atmosphere, especially the strong performance of ETH prices.
DOGE whales enter the market, and a 'cat-and-mouse game' unfolds within the price range.
Looking at Dogecoin (DOGE), whales have been very active lately, with buying volumes exceeding $200 million, and the price of Dogecoin is fiercely fluctuating between $0.22 and $0.23.
The support level of $0.22 remains strong, attracting many leveraged long positions, but the resistance level of $0.23 is still formidable, leading short-term traders to take profits while some large holders seize the opportunity to reduce their holdings. The typical supply zone has been repeatedly tested but has not yet broken through.
In this wave of trading, the trading volume in the last hour surged to eight times the average level, with institutions clearly offloading, increasing market volatility.
From the holdings perspective, whales have accumulated over 1 billion DOGE, worth about $200 million, nearly half of the circulating supply, indicating high ownership concentration. Large holder actions will continue to influence DOGE's price direction, and investors need to closely monitor whale dynamics.
A new era is about to arrive! BTC challenges the dollar's dominant position.
Besides the activity of mainstream coins in the crypto world, there are also major movements at the macro level—famous financial market expert Peter Brandt recently expressed heavy views, pointing out that the dollar's purchasing power has shrunk significantly since 1971 and is expected to depreciate by up to 97% by 2024. He believes that against this backdrop, decentralized cryptocurrencies, especially BTC, are gradually becoming important long-term value-preserving assets.
Brandt emphasized that the abandonment of the gold standard by the US in 1971 marked the starting point for the long-term weakening of the dollar, and investors' demand for wealth preservation is becoming increasingly diversified. Bitcoin is gradually being viewed as a new 'digital gold' due to its technological framework and limited supply, becoming a powerful tool against inflation and currency depreciation.
Traditionally, gold is the first choice for hedging, but Brandt pointed out that Bitcoin's transparency, immutability, and decentralized characteristics allow it to provide more efficient risk protection in many situations.
Of course, some remind that Bitcoin is highly volatile and lacks unified regulation, so investment should still be cautious. Nevertheless, more and more institutions and individual investors are beginning to incorporate Bitcoin into their portfolios, viewing it as an important means to hedge against inflation and preserve wealth.
In summary, the pressure of the US dollar depreciation has spurred the rise of digital assets. The value storage function of Bitcoin is being re-recognized, perhaps truly heralding its new era.
Summary: The dawn of the bull market coexists with risks, and a rational approach is the best strategy.
This market wave shows us the diversity and complexity of the crypto market.
The strong return of ETH has brought confidence and a new market cap breakthrough, but the contradiction between technical indicators and capital flow reminds us that the market is not all smooth sailing.
Vitalik's affirmation and risk warning regarding the treasury set reasonable expectations for Ethereum's future development.
The high burn rate of SHIB has sparked short-term activity, but the weak performance of the layer 2 network and trading volume requires caution from bulls.
The DOGE whale battle highlights the trading power of large holders, with intense short-term volatility, investors should avoid blindly following the trend.
BTC is challenging the dominance of the US dollar, becoming a new benchmark for value storage, which is worth paying attention to in the future.
The crypto world has always been a mix of passion and reason, opportunity and risk intertwined. By paying attention to the multidimensional changes in fundamentals, capital flows, and market sentiment, one can find their own rhythm in this bull market.
Finally, don't forget that the market voices are numerous, but the responsibility for investment decisions lies with you. Study carefully, verify from multiple sources, and that's the long-term investment path! 🚀
Many understand the trend, but not many follow the rhythm correctly.
The crypto world changes rapidly, with both opportunities and risks coexisting. Learning to enter and exit strategically to protect the principal is the key to moving forward steadily and reaping wealth and growth. ✍️
Remember to DYOR, manage your risks, and I wish everyone smooth sailing in the crypto world! 🌊
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