Author: Brian Njuguna

Was the Secret Transfer of $4 Billion to Alameda, FTX’s Undoing?

Brian Njuguna

The liquidity crunch facing FTX might have emanated from Sam Bankman-Fried, the crypto exchange’s CEO, secretly transferring at least $4 billion to boost Alameda, with part of the funds being customer deposits, according to Reuters. Per the report: “Seeking to prop up Alameda, which held almost $15 billion in assets, Bankman-Fried transferred at least $4 billion in FTX funds, secured by assets including FTT and shares in trading platform Robinhood Markets Inc. Bankman-Fried did not tell other FTX executives about the move to prop up Alameda.” Lucas Nuzzi,…

Crowd Sentiment towards Crypto Turns Bearish as Inflation Data Looms

Brian Njuguna

The crypto market has not yet been able to find the right footing based on tightened macroeconomic factors and Russia’s invasion of Ukraine. As a result, crowd sentiment toward cryptocurrencies has turned negative. Market insight provider Santiment explained: “With Bitcoin, Ethereum, and most altcoins ticking down slightly Monday, the crowd’s bearish outlook continues to be evident. Green bars indicate more FUD than usual toward an asset, and red bars indicate more FOMO.”   Source: Santiment Based on Santiment’s data, fear, uncertainty & doubt (FUD) continue to rock the…

Enthusiasm to Sell in the Crypto Market Subsided amid Prices Stabilize

Brian Njuguna

The urge to sell in the cryptocurrency market has dwindled based on the surge of leading coins, according to on-chain insight provider Santiment. Santiment stated: “Crypto traders’ enthusiasm to sell has quickly subsided, especially as Bitcoin jumped back over $25k and Ethereum over $2k this weekend. Ideally, bulls will actually want FUD to stay high, as prices historically flourish when there is doubt.” Source: Santiment This is a bullish sign because once selling pressure shrinks, the demand to buy kicks in and this triggers an upward push.  Despite…

Crypto Weekly Inflows Have Topped $500M for Six Consecutive Weeks: CoinShares

Brian Njuguna

Inflows into crypto investment products have been experiencing an uptick for six consecutive weeks, topping $500 million, according to a report by market insight provider CoinShares. The study dubbed “Volume 92: Digital Asset Fund Flows Weekly Report” highlighted: “Digital asset investment products saw inflows totalling US$3m last week marking the 6th consecutive week of inflows that total US$529m, representing 1.7% of total assets under management (AuM).” Source:CoinShares   CoinShares noted that constant inflows are happening despite the crash in the crypto market witnessed in the second quarter of…

Bitcoin Balance on Exchanges Experiences Macro Decline as Price Eyes a Weekly Close Above the 200-Week MA

Brian Njuguna

Bitcoin (BTC) continues to exit crypto exchanges since it’s recording a macro decline. Market insight provider Glassnode explained: “Bitcoin balance on exchanges continues its macro decline, reaching 12.6% of the Circulating Supply (2.4M BTC). Exchange balances have now seen a macro outflow of over 4.6% of the circulating supply since the March 2020 ATH.” Source:Glassnode   Bitcoin leaving exchanges is bullish because it signifies a holding culture, given that coins are transferred to digital wallets and cold storage for future purposes other than holding.    This might be…

Bitcoin Hodlers are Unwilling to Spend at Lower Prices as Most Coins Remain Untouched

Brian Njuguna

Despite the bearish momentum experienced in the Bitcoin (BTC) market, long-term hodlers remain steadfast because they are not selling. Market insight provider Glassnode explained: “Over 80% of the total USD denominated wealth invested in Bitcoin has been hodled for at least 3-months. This signifies that the majority of the Bitcoin  supply is dormant, and hodlers are increasingly unwilling to spend at lower prices.” Source:Glassnode   This correlates with the fact that Bitcoin’s balance on exchanges recently reached a 4-year low. BTC leaving crypto exchanges symbolizes a hodling culture,…

NFT Sales Slide to a 12-Month Low Amid Crypto Meltdown

Brian Njuguna

The bloodbath in the crypto market has contributed to sales in the non-fungible token (NFT) sector slipping to a 12-month low, according to crypto analytics firm Chainalysis. NFT sales slightly topped $1 billion in June, the worst performance since June 2021, when sales reached $648 million.    NFTs became the talk of the town when sales hit an all-time high (ATH) of $12.6 billion in January this year, but a sluggish start is witnessed in the second half of 2022.   Ethan McMahon, an economist at Chainalysis, pointed out: …

Are Institutional Investments Fueling Correlation Between Crypto and Stock Markets?

Brian Njuguna

Interest rate hikes and runaway inflation has continued to engulf the investment scene, given that the global economy finds itself on rocky grounds based on factors like the invasion of Ukraine by Russia. To tame rising inflation, various governments have resorted to increasing interest rates, which have had detrimental effects on the financial markets. For example, the Federal Reserve (Fed) raised the interest rate by 75 basis points (bps) earlier this month, a scenario that was last seen in 1994.    Traditionally, institutional investors were heavily inclined toward stocks in…

LUNA and UST Crash Could Have Been Averted if Bitcoin Reserves were Used Earlier, Binance CEO Says

Brian Njuguna

The collapse of LUNA and UST, the native tokens of the Terra network, could have been avoided if the Luna Foundation Guard (LFG) had used its Bitcoin reserves earlier, according to Binance CEO Changpeng Zhao (CZ). Sharing his insights on the Binance website, CZ noted: “The Terra team was slow in using their reserves to restore the peg. The entire incident may have been avoided if they had used their reserves when the de-peg was at 5%. After the value of the coins had already crashed by 99% (or…

Will Terra’s UST and LUNA Crash Cause a Shift to ‘Cryptos that have Stood the Test of Time’?

Brian Njuguna

LUNA has left crypto enthusiasts’ mouths agape because they could never imagine in their wildest dreams that one of the top ten cryptocurrencies could collapse to near-zero overnight. LUNA and TerraUSD (UST) are the native tokens of the Terra blockchain network developed by South Korean fintech firm Terraform Labs. LUNA sent shockwaves to the crypto market because it nearly lost 100% of its value by hitting an all-time low of $0.027 on May 12 from the all-time high (ATH) price of $119.18 recorded nearly a month ago on April 5, according…

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